Shares of AbbVie (ABBV -0.06%) were jumping 7.1% higher as of 11:10 a.m. ET on Friday after rising as much as 9.2% earlier in the day. The nice gain stemmed from the big drugmaker's 2024 fourth-quarter update on Friday morning.
AbbVie reported Q4 net revenue of $15.1 billion, up 5.6% and higher than the average estimate of $14.87 billion of analysts surveyed by Zacks Investment Research. The company posted a loss in Q4 of $0.02 per share based on generally accepted accounting principles (GAAP). However, it recorded adjusted diluted earnings per share (EPS) of $2.16. The average analysts' estimate was for adjusted EPS of $2.13, according to Zacks.
What investors especially liked
If you're thinking AbbVie's Q4 results weren't spectacular enough to spark such a big jump, you're right. However, there was more to the story with the company's quarterly update.
What investors especially liked was AbbVie's guidance. The drugmaker expects full-year 2025 adjusted EPS of $12.12 to $12.32. The low end of that range is higher than the average full-year EPS estimate of analysts surveyed by LSEG.
AbbVie president Robert A. Michael was also upbeat. He said in the press release announcing the Q4 results, "We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity."
Is AbbVie stock a buy?
I think AbbVie is a fantastic stock to buy for income investors who also like some growth. The company is a Dividend King, with a high forward dividend yield of 3.5%. The stock is also reasonably valued with a forward earnings multiple of 14.6.
