AbbVie (ABBV) Q2 2024 earnings summary

Executive summary

• Net revenues for the first half of 2024 were $26.8 billion, up 3% year-over-year, with Q2 operational sales up 5.6% to $14.5 billion, driven by strong immunology and oncology performance.

• Ex-HUMIRA growth platform now represents over 80% of total sales and is expected to exceed initial full-year guidance by $1 billion.

• Major acquisitions of ImmunoGen ($9.8B) and Cerevel Therapeutics ($8.7B) expanded the pipeline, with the latter closing in August 2024.

• Robert A. Michael succeeded Richard A. Gonzalez as CEO effective July 1, 2024.

• Robust commercial execution across immunology, oncology, neuroscience, and aesthetics, with SKYRIZI and RINVOQ leading growth.

Financial highlights

• Q2 2024 net revenues were $14.5 billion, up 4.3% year-over-year; adjusted EPS was $2.65, $0.10 above guidance midpoint, despite a $0.52 per share impact from acquired IP R&D expense.

• GAAP diluted EPS was $0.77, down 32.5% year-over-year; adjusted diluted EPS was $2.65, down 8.9%.

• Adjusted gross margin was 85.2%, adjusted R&D expense 13.3%, adjusted SG&A expense 22.9% of sales.

• Adjusted operating margin was 42.6%, with a 6.5% impact from acquired IP R&D; adjusted tax rate was 18.8%.

• Interest expense increased to $506 million in Q2 2024 due to acquisition-related financing.

Outlook and guidance

• 2024 adjusted EPS guidance raised to $10.71–$10.91, including $0.19 dilution for the pending Cerevel acquisition and a $0.60 per share impact from acquired IPR&D and milestones expense.

• Full-year net revenue guidance increased by $500 million to $55.5 billion, with ex-HUMIRA platform driving nearly $6 billion in sales growth.

• SKYRIZI global sales expected at $11 billion (+$300M), RINVOQ at $5.7 billion (+$100M), VENCLEXTA at $2.5 billion (+$100M).

• Aesthetics revenue guidance lowered to $5.5 billion due to slower market growth, especially in the U.S. and China.

• Expects continued investment in R&D and pipeline expansion, with multiple regulatory submissions and data readouts anticipated in the next 12 months.