Shares of AbbVie (ABBV -4.58%) were down 5.4% as of 2:00 p.m. ET Friday, even after the pharmaceuticals giant announced slightly better-than-expected quarterly results and raised its full-year outlook.
For its third-quarter 2023, AbbVie's revenue declined 6% year over year (down 5.8% at constant currency) to $13.93 billion, translating to a 19.4% drop in adjusted (non-GAAP) earnings to $2.95 per share. Analysts, on average, were anticipating adjusted earnings of $2.87 per share on revenue of $13.71 billion.
Double-digit gains for AbbVie's non-Humira growth platform
AbbVie Chairman and CEO Richard Gonzalez called it "another quarter of outstanding results driven by accelerating performance across our non-Humira growth platform, which is demonstrating double-digit growth."
Delving deeper into AbbVie's results, sales from its immunology portfolio fell 11.3%, hurt primarily by a 36% decline in sales of arthritis and plaque psoriasis drug Humira following the launch of biosimilar rival treatments earlier this year. Meanwhile, revenue from AbbVie's oncology portfolio dropped 8.4% to $1.512 billion, and aesthetics portfolio sales -- including its cosmetic Botox sales -- dropped 4.7% to $1.239 billion.
Partially offsetting these declines was a 22.1% increase in sales from the company's neuroscience portfolio to $2.043 billion, led by 45.6% growth in migraine medicine Ubrelvy sales (to $233 million) and a 35.4% jump from bipolar treatment Vraylar (to $751 million).
AbbVie is raising its guidance and dividend
Looking ahead to its full-year 2023 outlook, AbbVie now expects adjusted earnings per share ranging from $11.19 to $11.23 (up from $10.86 to $11.06). The company also increased its guidance floor for full-year 2024 adjusted earnings by $0.30 per share to $11.00. Finally, AbbVie modestly raised its quarterly cash dividend by $0.07 per share to $1.55 (payable on Feb. 15, 2024, to shareholders of record as of Jan. 16, 2024).
In the end, perhaps the market is treating this as a "sell the news" event. Or maybe traders are lamenting the combination of the not-so-shocking decline in Humira sales, coupled with underwhelming results from AbbVie's oncology and aesthetics lines. But in my view, this beat-and-raise quarter held no big surprises. It might well turn out to be a buying opportunity for patient investors willing to bet on the continued outperformance of AbbVie's non-Humira growth platform.
