AbbVie (ABBV) reported strong results for the second quarter. The company announced adjusted diluted earnings of $2.65 per share, which is an 8.9% decrease year-over-year but still exceeded analysts’ consensus estimate of $2.57 per share.
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ABBV’s Q2 Revenue Breakdown
The pharmaceutical company generated $14.46 billion in revenue during the second quarter, up 4.3% from the previous year. This figure surpassed analysts’ expectations of $14.02 billion. Sales of AbbVie’s key immunology drug, Humira, remained strong despite challenges.
Despite a nearly 30% drop in global sales to $2.81 billion in the second quarter, Humira’s performance still exceeded analysts’ expectations of $2.76 billion. Additionally, AbbVie has managed to retain over 80% of the U.S. market share for Humira, even with 10 biosimilars (similar versions of the drug) available, by reducing the drug’s net price. However, the company is still forecasting a 36% decline in U.S. sales of Humira for the year.
Despite the decline in Humira sales, AbbVie is optimistic that its newer immunology drugs, Skyrizi and Rinvoq, will continue to drive growth. In the second quarter, Skyrizi and Rinvoq achieved global sales of $2.73 billion and $1.43 billion, respectively, surpassing expectations.
Overall, AbbVie’s immunology portfolio made up more than 45% of its total revenues in Q2, generating $6.9 billion.
AbbVie’s FY24 Outlook
Looking ahead, the company raised its FY24 forecast, taking into account the strong Q2 sales of Humira. It now expects adjusted diluted EPS to be in the range of $10.71 to $10.91 per share, up from its previous outlook of $10.61 to $10.81 per share. For reference, analysts had projected FY24 earnings of $10.90 per share.
Is ABBV Stock a Buy or Sell?
Analysts remain bullish about ABBV stock, with a Strong Buy consensus rating based on 12 Buys and three Holds. Over the past year, ABBV has jumped by more than 25%, and the average ABBV price target of $188.46 implies an upside potential of around 7% from current levels. These analyst ratings are likely to change following ABBV’s results today.
