Pharmaceutical behemoth AbbVie (NYSE:ABBV) delivered a better-than-anticipated third-quarter performance, with EPS of $2.95 outpacing expectations by $0.08. Revenue of $13.93 billion also fared better than the consensus by $220 million, despite a year-over-year decline of 5.9%.
During the quarter, net revenue in the Immunology portfolio declined by 11.3% to $6.78 billion, owing to lower Humira sales. This impact was partially offset by over 50% growth in Skyrizi and Rinvoq sales. In AbbVie’s Oncology portfolio, net revenue also declined by 8.4% to $1.51 billion, mainly due to a 20% drop in Imbruvica sales.
Higher sales of Vraylar, Ubrelvy, and Botox therapeutics contributed to a 22.1% increase in the company’s Neuroscience portfolio, reaching $2 billion. On the other hand, net revenue in the Aesthetics portfolio declined by 4.7% to $1.24 billion, primarily due to lower Botox Cosmetic sales.
Importantly, AbbVie has raised its adjusted EPS outlook for Fiscal Year 2023 to a range of $11.19 to $11.23 from the previous expectations of between $10.86 and $11.06. The company has also raised its adjusted EPS guidance floor for 2024 to $11 from $10.70.
Additionally, the firm has increased its quarterly dividend by 4.7% to $1.55 per share. The ABBV dividend is payable on February 15 to investors of record on January 16.
What is the Target Price for ABBV?
Overall, the Street has a Moderate Buy consensus rating on AbbVie. The average ABBV price target of $168.50 implies a 16% potential upside.
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