AbbVie Tracking for New Highs in 2024

Core Insights - AbbVie reported a better-than-expected quarter with a return to growth, revenue strength, and increased guidance, despite a significant decline in Humira sales [2] - Analysts have lowered their price targets but still project a 16% upside, indicating potential for a new all-time high [1][2] - The non-Humira portfolio is showing strong growth, with key drugs experiencing substantial sales increases [2] Financial Performance - Humira sales fell by 40% in the quarter, now accounting for less than 20% of total revenues, while sales of drugs like Ubrelvy, Skyrizi, Venclexta, Rinvoq, and Qulipta increased by 34%, 48%, 48%, 60%, and 98% respectively [2] - GAAP earnings of $0.77 are up 500% year-over-year, and adjusted earnings of $2.31 beat expectations [2] - The company raised its full-year adjusted EPS guidance, indicating positive momentum in the non-Humira portfolio [2] Capital Returns and Dividends - AbbVie maintains a healthy dividend yield of 3.81% with an annual dividend of $6.20, supported by a sustainable payout ratio [3] - The company has a strong track record of dividend increases over the past 52 years, with an annualized 3-year dividend growth of 7.84% [3] - AbbVie has increased cash by 50% and is expected to benefit from the recent acquisition of ImmunoGen, which is projected to grow sales significantly [3] Market Position and Stock Performance - AbbVie shares fell to a critical support level but are currently trading above it, indicating potential for a rebound [4] - The stock is currently rated as a "Moderate Buy," but some analysts suggest there are better investment opportunities available [5]