AbbVie Posts Mixed Q4 Results & Upbeat FY22 Outlook

AbbVie (NYSE: ABBV) reported mixed results for the fourth quarter, topping earnings estimates but falling modestly short of revenues expectations.

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Notably, shares of the biopharmaceutical company gained 1.2% on February 2 to close at $138.62, after the company issued FY2021 guidance well above the analyst expectations.

Mixed Q4 Numbers

Adjusted earnings of $3.31 per share grew 13.4% year-over-year and beat analysts’ expectations of $3.28 per share. The company reported earnings of $2.92 per share for the prior-year period.

However. revenues gained 7.4% year-over-year to $14.89 billion, but lagged consensus estimates of $14.95 billion.

The 7.4% growth reflects a surge in revenues across all the reported segments, with 13.2% growth in the immunology portfolio, 4.6% in the hematologic oncology portfolio, 19% in the neuroscience portfolio, and 22.8% in the aesthetics portfolio.

Upbeat FY2022 Guidance

Management also issued the financial guidance for FY2022. The company forecasts adjusted earnings in the range of $14.00 to $14.20 per share, while the consensus estimate is pegged at $13.99 per share.

CEO Comments

AbbVie CEO, Richard A. Gonzalez, commented, “We are entering 2022 with significant momentum and expect our diverse set of growth assets, robust pipeline and excellent execution to deliver continued strong performance this year and over the long term.”

Wall Street’s Take

Following the Q4 results, Piper Sandler analyst Christopher Raymond reiterated a Buy rating on AbbVie with a price target of $160 (15.4% upside potential).

Raymond noted that a higher-than-expected FY2022 outlook, and worse-than-anticipated post-Humira loss of exclusivity revenue decline in 2023, are being played out.

Overall, the stock has a Strong Buy consensus rating based on 15 Buys and 3 Holds. At the time of writing, the average AbbVie price target was $145.5 (5% upside potential to current levels).

TipRanks’ Smart Score

ABBV scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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