AbbVie Inc (ABBV) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Outlook

In This Article:

  • Full-Year Adjusted Earnings Per Share: $10.12, $0.49 above initial guidance midpoint.

  • Total Net Revenues: $56.3 billion, exceeding initial guidance by more than $2 billion.

  • Ex-HUMIRA Platform Sales Growth: More than 18% for the full year, 22% in the fourth quarter.

  • SKYRIZI and RINVOQ Combined Revenue: Approximately $17.7 billion, an increase of nearly $6 billion year over year.

  • Fourth-Quarter Immunology Revenues: Approximately $7.3 billion.

  • Fourth-Quarter Oncology Revenues: Approximately $1.7 billion.

  • Fourth-Quarter Neuroscience Revenues: $2.5 billion, up 19.9% operationally.

  • Fourth-Quarter Aesthetics Sales: Approximately $1.3 billion, operational decrease of 4.4%.

  • Fourth-Quarter Adjusted Earnings Per Share: $2.16, $0.08 above guidance midpoint.

  • Fourth-Quarter Total Net Revenues: $15.1 billion, 6.1% operational growth.

  • Adjusted Gross Margin: 83.8% of sales.

  • Adjusted R&D Expense: 15.1% of sales.

  • Adjusted SG&A Expense: 23.6% of sales.

  • Adjusted Operating Margin Ratio: 34.7% of sales.

  • Net Interest Expense: $610 million.

  • Adjusted Tax Rate: 20.2%.

  • 2025 Full-Year Adjusted Earnings Per Share Guidance: Between $12.12 and $12.32.

  • 2025 Total Net Revenues Forecast: Approximately $59 billion, 5.7% operational growth.

  • 2025 Free Cash Flow Expectation: Approaching $17 billion.

Release Date: January 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AbbVie Inc (NYSE:ABBV) delivered full-year adjusted earnings per share of $10.12, exceeding initial guidance by $0.49.

  • Total net revenues were $56.3 billion, surpassing initial guidance by more than $2 billion.

  • The ex-HUMIRA platform showed strong performance with a 22% revenue growth in the fourth quarter.

  • SKYRIZI and RINVOQ are expected to generate nearly $24 billion in revenue in 2025, with a projected increase to over $31 billion by 2027.

  • The neuroscience segment is projected to achieve $10 billion in sales in 2025, reflecting growth across psychiatry, migraine, and Parkinson's treatments.

Negative Points

  • Global sales of HUMIRA declined by 48.7% due to biosimilar competition, with further access reductions anticipated in 2025.

  • The aesthetics segment experienced a 4.4% operational decrease in sales, impacted by challenging market conditions in the US and China.

  • The Medicare Part D benefit redesign is expected to have a roughly 4% net unfavorable impact on AbbVie's portfolio in 2025.

  • IMBRUVICA revenues declined by 6.2% due to competitive dynamics in chronic lymphocytic leukemia (CLL).

  • The aesthetics market faces headwinds from economic conditions, with a cautious outlook for modest sales growth in 2025.