AbbVie Inc (NYSE:ABBV) reported better-than-expected fourth-quarter earnings on Friday.
AbbVie reported fourth-quarter adjusted EPS of $2.79, down 22.5% Y/Y, beating the consensus of $2.77. Fourth-quarter net revenues reached $14.301 billion, down 5.4% Y/Y, beating the consensus of $14.02 billion, according to data from Benzinga Pro.
In November, AbbVie agreed to acquire ImmunoGen and its flagship cancer therapy, Elahere, for $31.26 per share in cash, with an equity value of approximately $10.1 billion.
AbbVie expects fiscal year 2024 adjusted EPS of $11.05-$11.25, which includes a $0.32/share dilutive impact related to ImmunoGen and Cerevel Therapeutics acquisitions, versus the consensus of $11.29.
AbbVie is reaffirming its expectations for a high single-digit compound annual revenue growth rate through 2029. The company raised its long-term outlook for Skyrizi and Rinvoq revenues and expects combined 2027 revenues of over $27 billion, compared to over $21 billion expected earlier.
“2023 was another outstanding year, marked by strong operational execution and significant overperformance from our non-Humira growth platform. During the year we meaningfully increased R&D investment and bolstered our pipeline with the proposed ImmunoGen and Cerevel Therapeutics acquisitions,” said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. “2024 is an exciting year for AbbVie, as we are well positioned to fully absorb Humira erosion and achieve modest operational revenue growth, followed by a return to robust growth in 2025 and a high single-digit CAGR through the end of the decade.”
AbbVie shares rose 0.6% to close at $168.67 on Friday.
These analysts made changes to their price targets on AbbVie after the company reported quarterly results.
- Barclays raised the price target on AbbVie from $175 to $185. Barclays analyst Carter Gould maintained an Overweight rating.
- Raymond James increased AbbVie price target from $181 to $189. Raymond James analyst Gary Nachman maintained an Outperform rating.
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