AbbVie (ABBV) Q3 2024 earnings summary

Executive summary

• Delivered robust Q3 results with net revenues of $14.46B, up 3.8% year-over-year (4.9% operationally), and adjusted EPS of $3.00, driven by strong Skyrizi and Rinvoq growth offsetting Humira declines.

• Raised full-year 2024 adjusted EPS guidance to $10.90–$10.94 and increased revenue guidance, reflecting continued business momentum.

• Completed acquisitions of Cerevel Therapeutics and ImmunoGen, expanding neuroscience and oncology portfolios; announced agreement to acquire Aliada Therapeutics.

• Announced a 5.8% increase in quarterly cash dividend to $1.64 per share, effective February 2025.

• New CEO Robert A. Michael appointed in July 2024.

Financial highlights

• Q3 adjusted EPS was $3.00, up 1.7% year-over-year, with a $0.04 IPR&D expense impact; GAAP diluted EPS was $0.88, down 12%.

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

• Adjusted operating margin was 46.7% in Q3; gross margin 84.4% (adjusted), 70.9% (GAAP); R&D expense 14.2% (Q3), SG&A 23%.

• Operating cash flow for the nine months was $11.8B; cash balance $7.3B at September end.

• Net interest expense was $591M in Q3; adjusted tax rate 16.2% in Q3.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $10.90–$10.94; net revenue guidance increased to ~$56B.

• Skyrizi sales guidance raised to $11.5B, Rinvoq to $5.8B, Humira reduced to $7.4B.

• Aesthetics revenue guidance lowered by $200M due to Juvederm softness; Vraylar guidance reduced by $100M.

• Q4 net revenues expected to approach $14.8B; adjusted EPS $2.94–$2.98.

• Guidance excludes potential IPR&D and milestones expense from the Aliada Therapeutics acquisition, expected to close in Q4 2024.