Biopharma giant AbbVie (ABBV 1.04%) reported first-quarter 2024 results late last week that revealed notable outperformance against analysts' estimates. Despite what management termed a challenging environment, AbbVie managed to generate adjusted diluted EPS of $2.31, surpassing the $2.26 expectation. 2024's result was down 6.1% year over year, pointing to AbbVie's ability to exceed market forecasts amid adversity.
Revenue also topped estimates at $12.3 billion, but annual growth was a lackluster 0.7%. The quarterly results suggest AbbVie is facing up well to clear sales headwinds.
Earnings data overview
| Metrics | Q1 2024 | Analysts' Estimates | Q1 2023 | Change (YOY) |
|---|---|---|---|---|
| Adjusted EPS | $2.31 | $2.26 | $2.46 | -6.1% |
| Revenue | $12.3 billion | $11.9 billion | $12.2 billion | +0.7% |
| Humira revenue | $2.27 billion | N/A | $3.5 billion | -36% |
| Skyrizi revenue | $2 billion | N/A | $1.4 billion | +48% |
| Rinvoq revenue | $1.1 billion | N/A | $0.7 billion | +59% |
Analyst source: FactSet. YOY = Year over year. EPS = Earnings per share. Note: All revenue figures are global sales.
AbbVie at a glance
AbbVie is a pharmaceutical manufacturer with a diversified product portfolio that spans immunology, oncology, aesthetics, and neuroscience. Its immunology portfolio includes Humira, which started facing biosimilar competition in mid-2023. Its sales pressure is partially mitigated by the growth of newer drugs like Skyrizi and Rinvoq.
AbbVie's focus this year has shifted toward harnessing the potential within its oncology and neuroscience portfolios. This strategic diversification aids AbbVie in counteracting the pressures from the immunology sector and underscores its ability to effectively navigate industry challenges.
Quarterly highlights
The first quarter of 2024 was marked by significant transitions within AbbVie's product lineup. Humira faced notable challenges, with global net revenue falling 35.9% year over year due to biosimilar competition. However, this decline was counteracted by substantial growth in Skyrizi and Rinvoq revenues, which saw year-over-year growth of 47.6% and 59.3% respectively. AbbVie's oncology and neuroscience portfolios also saw encouraging growth, with a 9% and 15.9% increase in global net revenues, respectively.
AbbVie's cosmetic treatment Botox brought in $633 million in Q1 sales (a 4% drop year over year). Sales of the skin-tightening drug Juvederm lagged 16.4% year over year at $297 million. AbbVie's profit margin for the quarter rose to 11% (up from 1.9% in Q1 2023).
The period also saw the company adjust its full-year EPS guidance upwards to $11.13-$11.33, signaling management's confidence in AbbVie's growth trajectory and operational resilience. This revision reflects a calculated response to current market dynamics and internal performance metrics.
Looking ahead
With the revised full-year EPS guidance, AbbVie's management said it was upbeat about the remainder of 2024. The emphasis lies on strategic portfolio management, with special attention to expanding the immunology portfolio despite the looming biosimilar competition. Focus areas include advancing pipeline projects and optimizing market access strategies to bolster future revenue streams. Investors are encouraged to monitor AbbVie's progress in enhancing its oncology and neuroscience portfolios, alongside developments in its pipeline and regulatory activities.
