AbbVie (ABBV) Q3 2024 earnings summary

Executive summary

• Delivered robust Q3 results with net revenues of $14.46 billion, up 4.9% operationally year-over-year, and adjusted EPS of $3.00, exceeding guidance midpoint.

• Completed acquisitions of Cerevel Therapeutics and ImmunoGen, expanding neuroscience and oncology portfolios; new CEO Robert A. Michael appointed in July 2024.

• Raised full-year revenue guidance by $500 million to $56 billion and adjusted EPS guidance to $10.90–$10.94.

• Announced a 5.8% dividend increase, effective February 2025.

• Focused on diversified revenue base, strong commercial execution, and continued investment in R&D and on-market brands.

Financial highlights

• Net revenues for nine months ended September 30, 2024 were $41.2B, up 3% year-over-year (4% at constant currency).

• Adjusted operating margin was 46.7% of sales; adjusted gross margin 84.4%; adjusted R&D expense 14.2%; adjusted SG&A 23%.

• Operating cash flow for the nine months was $11.8B; cash and equivalents at period end were $7.3B.

• Net interest expense was $591 million; adjusted tax rate 16.2%.

• Gross margin for the nine months was 70%, up from 63% in the prior year period.

Outlook and guidance

• Full-year net revenue guidance raised to $56 billion, with Skyrizi and Rinvoq sales guidance increased to $11.5 billion and $5.8 billion, respectively.

• Full-year 2024 adjusted diluted EPS guidance raised to $10.90–$10.94, including a $0.64 per share unfavorable impact from acquired IPR&D and milestones expense.

• Humira sales guidance lowered to $7.4 billion due to volume shift to novel therapies.

• Anticipates several regulatory submissions and key clinical trial data readouts in the next 12 months.

• Quarterly dividend increased by 5.8% to $1.64 per share, effective February 2025.