Group 1 - AbbVie will participate in the Bank of America Securities Healthcare Conference on May 15, 2024, with key executives presenting at 12:40 p.m. Central time [1] - The presentation will be accessible via a live audio webcast on AbbVie's Investor Relations website, with an archived version available later that day [1] Group 2 - AbbVie's mission focuses on discovering and delivering innovative medicines to address serious health issues and future medical challenges [2] - The company aims to make a significant impact in several therapeutic areas, including immunology, oncology, neuroscience, and eye care, as well as in its Allergan Aesthetics portfolio [2]

Financial Performance - AbbVie reported worldwide net revenues of $12.3 billion for the three months ended March 31, 2024, representing a 1% increase on a reported basis and a 2% increase on a constant currency basis compared to the same period in 2023[129]. - The company achieved operating earnings of $2.8 billion and diluted earnings per share of $0.77 for the same period, which included after-tax costs of $1.6 billion related to the amortization of intangible assets[129][131]. - In the U.S., AbbVie's net revenues were $9.0 billion, reflecting a decrease of 1.7% at actual currency rates, while international revenues increased by 8.1% to $3.3 billion[141]. - Global Humira sales decreased 35% for the three months ended March 31, 2024, with a 40% decrease in the United States due to direct biosimilar competition[144]. - Net revenues for Skyrizi increased 48% for the three months ended March 31, 2024, driven by strong market share uptake and market growth[144]. - Net revenues for Rinvoq increased 62% for the three months ended March 31, 2024, primarily due to continued strong market share uptake[145]. - Global Imbruvica revenues decreased 5% for the three months ended March 31, 2024, driven by decreased demand and lower market share in the United States[145]. - Net revenues for Venclexta increased 16% for the three months ended March 31, 2024, driven by market share uptake and market growth[145]. - Net revenues for Botox Cosmetic decreased 3% for the three months ended March 31, 2024, primarily due to customer inventory destocking[146]. - Net revenues for Juvederm Collection decreased 14% for the three months ended March 31, 2024, impacted by customer inventory destocking and decreased consumer demand[146]. - Net revenues for Vraylar increased 24% for the three months ended March 31, 2024, driven by continued market share uptake[147]. - Net revenues for Ubrelvy increased 34% for the three months ended March 31, 2024, due to market share uptake and market growth[147]. - Net revenues for Qulipta increased 98% for the three months ended March 31, 2024, driven by strong market share uptake and regulatory approval for chronic migraine treatment[147]. - Gross margin for the three months ended March 31, 2024 was $8,216 million, remaining flat at 67% of net revenues compared to the prior year[148]. Expenses and Cash Flow - Selling, general and administrative (SG&A) expenses increased by 9% to $3,315 million, representing 27% of net revenues, impacted by acquisition costs related to ImmunoGen[149]. - Research and development (R&D) expenses decreased by 15% to $1,939 million, accounting for 16% of net revenues, primarily due to a prior year impairment charge[150]. - Upfront charges for acquired IPR&D and milestones totaled $164 million for the three months ended March 31, 2024, compared to $150 million in the prior year[151]. - Operating cash flows decreased to $4,040 million from $4,193 million in the prior year, primarily due to ImmunoGen acquisition-related expenses[156]. - Investing cash flows included $9.8 billion for the acquisition of ImmunoGen, with total cash consideration paid offset by cash acquired of $591 million[157]. - Financing cash flows included the issuance of $15.0 billion in senior notes to finance the ImmunoGen acquisition and proposed acquisition of Cerevel Therapeutics[158]. Strategic Developments - AbbVie completed the acquisition of ImmunoGen on February 12, 2024, enhancing its solid tumor pipeline and immuno-oncology assets, which are expected to create new treatment possibilities[126]. - AbbVie has approximately 90 compounds in its pipeline, with around 50 in mid- and late-stage development, focusing on immunology, oncology, aesthetics, neuroscience, and eye care[131]. - The company anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months as part of its strategic objectives[128]. - AbbVie initiated a Phase 3 study for Rinvoq in January 2024, targeting non-segmental vitiligo, and reported positive results from multiple trials in April 2024[132][133]. - The FDA granted full approval for Elahere in March 2024 for treating platinum-resistant epithelial ovarian cancer, expanding AbbVie's oncology portfolio[136]. - AbbVie launched Produodopa (ABBV-951) in the EU for advanced Parkinson's disease in January 2024, addressing severe motor fluctuations[139]. Shareholder Returns - The company aims to maximize the benefits of a diversified revenue base and continue investing in its pipeline while returning cash to shareholders through dividends[128]. - The effective tax rate decreased to 22% for the three months ended March 31, 2024, down from 49% in the prior year, primarily due to changes in fair value of contingent consideration[155]. - The company repurchased 5 million shares for $959 million during the three months ended March 31, 2024, compared to 10 million shares for $1.6 billion in the prior year[160]. - The board of directors declared a quarterly cash dividend of $1.55 per share, payable on May 15, 2024, reflecting the company's ongoing commitment to return capital to shareholders[159].

Core Viewpoint - Dividend stocks, particularly Dividend Kings, are recommended for investors seeking reliable income and potential capital appreciation, especially as interest rates may decline in 2024 [2][3]. Group 1: Dividend Kings Overview - Dividend Kings are companies that have raised their dividends for 50 consecutive years or more, appealing to growth and income investors [3]. - The article highlights five Dividend Kings that have underperformed recently but are expected to rebound, all rated as buys by top Wall Street firms [2]. Group 2: Company Summaries - **AbbVie Inc. (NYSE: ABBV)**: A leading pharmaceutical company with a 3.88% dividend, offering a range of treatments for autoimmune diseases, cancers, and other health conditions [4][5][6]. - **Coca-Cola Co. (NYSE: KO)**: The world's largest beverage company with a 3.06% dividend, known for its extensive portfolio of over 500 brands and significant market presence [7]. - **Kenvue Inc. (NYSE: KVUE)**: A consumer health company spun off from Johnson & Johnson, offering a 3.72% dividend and a diverse range of health and beauty products [9]. - **Kimberly-Clark Corp. (NYSE: KMB)**: A consumer staples leader with a 3.98% dividend, manufacturing personal care and tissue products [10]. - **Target Corp. (NYSE: TGT)**: A general merchandise retailer with a 3.17% dividend, offering a wide variety of products and employing a multi-channel sales strategy [12].

Core Insights - AbbVie's Humira sales are declining significantly due to competition from cheaper biosimilars, with revenue dropping over 30% to $2.3 billion in the first quarter [1][2] - AbbVie has two successor drugs, Skyrizi and Rinvoq, which are performing well and contributing to the company's revenue growth [1][3] Sales Performance - Humira's revenue fell to $2.3 billion, a decrease of more than 30% compared to previous periods [1][3] - Skyrizi generated $2 billion in revenue for the first quarter, while Rinvoq brought in $1.1 billion [3][4] - Skyrizi's sales increased by 48% year-over-year, and Rinvoq's revenue spiked by 59% [4] Market Dynamics - The market share for Humira biosimilars surged from 5% to 36% following CVS's decision to drop Humira from some formularies [2][3] - As of February, biosimilars had captured around 4% of the Humira market, but this changed rapidly after CVS's policy shift [2][3] - 20% of patients are transitioning to AbbVie's newer drugs instead of biosimilars [3] Competitive Landscape - Skyrizi is the market leader in U.S. biologics for psoriasis, holding 35% market share, and is expected to enter the ulcerative colitis market soon [4] - Rinvoq is gaining traction among patients with inflammatory bowel diseases [4] - Health insurer Cigna plans to offer certain Humira biosimilars with no out-of-pocket costs starting in June, indicating increased competition [5][6]

Core Insights - The article discusses seven resilient companies that are well-positioned to thrive in a turbulent market, highlighting their strengths in stability and growth despite economic challenges. Group 1: Company Performance and Growth - Alphabet's Google Cloud reported a revenue of $9.6 billion in Q1 2024, reflecting a 28% year-over-year growth, driven by AI capabilities and cloud infrastructure expansion [3][4] - T. Rowe Price's total assets under management reached $1.54 trillion in Q1 2024, marking a 15% year-over-year increase, showcasing strong investor trust and performance [5] - Pfizer's strategic initiatives, including pipeline innovation and acquisitions, have led to a record year for regulatory approvals, enhancing its growth potential [7][8] - Exxon Mobil's capital expenditures of $5.8 billion in Q1 2024 focus on growth projects, including significant expansions in Guyana, aiming to increase production capacity [9][10] - Walmart's ROI improved by 2.3% to 15% in 2023, supported by a capital expenditure of $20.6 billion aimed at enhancing digital capabilities and strategic acquisitions [11][12] - AbbVie's revenue surged from $18 billion to $55 billion, driven by a diverse product line and effective market strategies, despite challenges from patent expirations [16][17] Group 2: Strategic Initiatives and Market Position - The first company emphasizes leadership in digital services and advertising, with cloud and video platforms as revenue foundations [1] - The second company offers diverse investment options and strong asset management performance, providing stability and growth opportunities [1] - The third company is a leader in pharmaceuticals, supported by strategic acquisitions and a robust pipeline [1] - The fifth company focuses on smart acquisitions and effective capital deployment to enhance durability [2] - The sixth company highlights financial adaptability and efficiency to navigate market challenges [2] - British American Tobacco aims to save an additional £1 billion by 2025, demonstrating a commitment to cost control and resource reallocation [13][14][15]

Company Overview - AbbVie (ABBV) is a medical stock headquartered in North Chicago, with a year-to-date price change of 4.23% [2] - The company currently pays a dividend of $1.55 per share, resulting in a dividend yield of 3.84%, which is significantly higher than the Large Cap Pharmaceuticals industry's yield of 2.68% and the S&P 500's yield of 1.57% [2] Dividend Performance - AbbVie's current annualized dividend of $6.20 has increased by 4.7% from the previous year [2] - Over the past five years, AbbVie has raised its dividend five times, achieving an average annual increase of 8.25% [2] - The company's payout ratio stands at 57%, indicating that it distributes 57% of its trailing 12-month earnings per share as dividends [2] Earnings Expectations - AbbVie is projected to experience earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2024 at $11.13 per share, reflecting a year-over-year growth rate of 0.18% [3] Investment Considerations - Dividends are favored by investors for various reasons, including enhancing stock investing profits and providing tax advantages [4] - Established firms with stable profits are typically viewed as the best dividend options, while high-growth companies and tech startups rarely offer dividends [4] - AbbVie is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [4]

Core Viewpoint - Dividend Aristocrat stocks are particularly appealing to investors in the current high-inflation environment, as many of these stocks offer dividends that can outpace or negate inflation rates [1]. Group 1: Altria (MO) - Altria offers a high dividend yield of 9%, but operates in a declining tobacco industry, making it a riskier investment [2]. - The company's payout ratio is 78%, indicating that 78% of earnings are allocated to dividend payments, which is high but manageable [2]. - Altria plans to increase its buyback program from $1 billion to $2.4 billion, which will reduce the payout ratio and enhance the attractiveness of its shares [3]. Group 2: Archer Daniels Midland (ADM) - ADM is facing challenges due to an investigation into accounting practices, but its dividend yield of 3.25% outpaces inflation [5]. - The company is cooperating with regulatory authorities and has restated six years of profits, which may lead to penalties but is expected to limit long-term repercussions [5]. - There is potential for a rebound in ADM shares as the company moves past its current negative phase [6]. Group 3: Kimberly-Clark (KMB) - Kimberly-Clark reported first-quarter revenues of $5.15 billion, exceeding expectations by 1.16%, and earnings of $2.01, which surpassed the anticipated $1.63 [7]. - The company has raised its annual forecast due to steady demand for its personal care products, indicating resilience against inflation [7][8]. - KMB offers a dividend yield of 3.5%, making it an attractive option for investors [8]. Group 4: Chevron (CVX) - Chevron's stock is positioned interestingly due to elevated inflation and ongoing conflicts in the Middle East, which may support oil prices [10]. - The company offers a dividend yield of approximately 4%, which is appealing despite the potential negative impact of inflation on oil demand [10]. - The energy sector, including Chevron, has performed well in 2024, outpacing the S&P 500 [11]. Group 5: AbbVie (ABBV) - AbbVie is recovering from instability related to the patent expiration of Humira and is now focusing on successor drugs like Rinvoq and Skyrizi [12]. - The company has improved its revenue forecasts and is in a better position to enhance efficiency rather than solely seeking new revenue sources [13]. - AbbVie offers a dividend yield of 3.7%, which helps it outpace inflation [13]. Group 6: Stanley Black & Decker (SWK) - Stanley Black & Decker has a dividend yield of 3.6%, which exceeds current inflation rates, and a free cash flow payout ratio of 56%, indicating dividend security [14]. - Despite a 50% decline in share prices since late 2022 due to high mortgage rates affecting demand, the company is expected to rebound [14][15]. - The current share prices are seen as deeply discounted, presenting a strong investment opportunity [15]. Group 7: Coca-Cola (KO) - Coca-Cola is recognized for its resilience across market cycles and offers a dividend yield of 3.2%, which helps negate inflation effects [16]. - The stock has tripled in price over the last 15 years, making it a reliable long-term investment [16]. - The defensive nature of Coca-Cola makes it attractive to investors concerned about economic downturns [17].

Core Viewpoint - AbbVie is facing challenges due to the decline in sales of its leading drug Humira following patent expiration, but the performance of its newer drugs Skyrizi and Rinvoq is promising, leading to a mixed market reaction despite better-than-expected earnings and sales results [1][2][3]. Group 1: Financial Performance - AbbVie reported first-quarter sales of $12.3 billion, flat year over year, with earnings per share of $2.31, down from $2.46 a year prior, surpassing analysts' expectations of $2.23 per share on revenue of $11.9 billion [2]. - The company has raised its earnings per share guidance for 2024 to a range of $11.13 to $11.33, up from a previous range of $10.97 to $11.17, while analysts' consensus is slightly lower at $11.12 per share [2]. Group 2: Drug Performance - Sales of Skyrizi increased by 47.6% year over year, while Rinvoq's revenue rose by 59.3%, helping to offset Humira's 35.9% sales decline [2]. - Humira generated $14.4 billion in revenue last year, making it one of the world's best-selling drugs, and its decline will significantly impact AbbVie [4]. Group 3: Market Sentiment and Valuation - Despite the positive performance of newer drugs, investors remain concerned about the potential for accelerated declines in Humira sales, leading to a 4.6% drop in AbbVie’s stock on the day of the earnings report [1][3]. - AbbVie’s stock is currently trading at a valuation of around 14 times this year's expected earnings, which is considered a fair entry point for new investors, especially given the stock's 12% decline from its late-March peak [4][5].

Key TakeawaysAbbVie warned Friday that sales of its blockbuster arthritis drug, Humira, will continue to lose market share to biosimilars.Revenue from Humira declined 35.9% in the first quarter, AbbVie reported.Despite the drop in Humira sales, AbbVie beat earnings and revenue forecasts in the quarter, and raised its full-year guidance.AbbVie shares were down nearly 5% in late trading Friday. Shares of AbbVie (ABBV) slumped Friday as the pharmaceutical firm warned of deeper declines in sales of its blockbus ...

Earnings and Revenue Performance - AbbVie reported adjusted earnings of $2.31 per share for Q1 2024, beating the Zacks Consensus Estimate of $2.26 and exceeding the guidance range of $2.18-$2.22 [1] - Revenues of $12.31 billion surpassed the Zacks Consensus Estimate of $11.99 billion, with a 0.7% year-over-year increase on a reported basis and 1.6% on an operational basis [1] - Earnings declined 6.1% year-over-year [1] Product Sales Performance - Humira sales declined 35.2% year-over-year to $2.27 billion, with US sales down 39.9% to $1.77 billion and ex-US sales down 11.6% to $499 million [2] - Rinvoq sales increased 61.9% to $1.09 billion, driven by label expansions [2] - Skyrizi sales rose 48.0% to $2.01 billion, also due to label expansions [3] - Neuroscience portfolio sales increased 16.0% to $1.97 billion, driven by Vraylar, Ubrelvy, and Qulipta [3] - Oncology/hematology sales rose 9.8% to $1.54 billion, with Venclexta sales up 16.3% to $614 million [4][5] - Elahere, a recently acquired ovarian cancer drug, generated $64 million in revenues [5] Aesthetics and Eye Care Portfolio - Aesthetics portfolio sales declined 2.5% to $1.25 billion, with Botox Cosmetic sales down 2.6% to $633 million and Juvederm sales down 13.7% to $297 million [6] - Eye care portfolio sales declined 10.4% to $538 million, though Ozurdex sales rose 14.6% to $131 million [6] Cost and Margin Analysis - Adjusted SG&A expenses increased 1.6% to $3.03 billion, while adjusted R&D expenses rose 9.3% to $1.81 billion [7] - Adjusted operating margin contributed 42.2% to sales [7] Guidance and Future Outlook - AbbVie raised its 2024 EPS guidance to $11.13-$11.33, up from the previous range of $10.97-$11.17 [8] - The company expects robust revenue growth in 2025, driven by new product launches and a high single-digit CAGR through the end of the decade [10] - Management is strengthening its oncology pipeline through partnerships with companies like Umoja Biopharma and Tentarix Biotherapeutics [10] Market Performance - AbbVie shares rose 1.2% in pre-market trading following the earnings announcement [9] - Year-to-date, AbbVie shares have increased 8.0%, compared to the industry's 10.8% rise [9]