AbbVie Exceeds Expectations with Strong 2024 Earnings

AbbVie has delivered a solid performance in 2024, posting 6% sales growth and adjusted EPS of $2.12, surpassing guidance. With promising drugs Skyrizi and Rinvoq contributing significantly, the outlook for AbbVie looks positive moving into 2025.

Date: 15-02-2025

AI Rating: 7

AbbVie's Performance Overview

AbbVie reported 6% sales growth for the fourth quarter of 2024 and achieved adjusted earnings per share (EPS) of $2.12, both of which were above initial guidance. This performance indicates a strong upward momentum, enhancing investor confidence.

Revenue Growth

The company saw substantial growth driven mainly by its new blockbuster drugs, Skyrizi and Rinvoq, which resulted in combined sales of $17.7 billion in 2024 – a significant 51% increase year over year. The overall revenue, excluding the declining sales from Humira, increased by 18%, showcasing AbbVie's effective transition in its product portfolio.

EPS Growth

For the upcoming fiscal year, AbbVie has projected adjusted diluted EPS to be between $12.12 and $12.32, up from $10.12 in 2024. This represents a 21% expected increase, indicating strong earnings momentum that could drive further stock price appreciation.

Long-term Outlook

The management has expressed optimism about the growth potential, projecting revenues from Skyrizi and Rinvoq to climb significantly, with projections of up to $24 billion in 2025 and over $31 billion by 2029. With no major loss of exclusivity events anticipated in the near future, AbbVie seems well-positioned for sustainable growth.

Current Valuation

AbbVie's shares are currently trading at a forward price-to-earnings (P/E) ratio of under 16, which is appealing given the company's strong growth outlook and robust dividend yield of 3.3%. This valuation suggests that the stock may offer value to investors looking for growth and income.

Stocks: ABBV