AbbVie (ABBV) Beats on Q1 Earnings & Sales, Ups '24 EPS View

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]