AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company renowned for its innovative medicines, especially in the fields of immunology and oncology. Despite facing challenges with its flagship drug, Humira, due to competition from biosimilars, AbbVie continues to focus on its newer drugs, Skyrizi and Rinvoq, to drive future growth.
On January 31, 2025, AbbVie reported earnings per share (EPS) of $2.16, missing the estimated $2.98. However, the company exceeded revenue expectations, reporting $15.1 billion compared to the estimated $14.8 billion. As highlighted by Zacks, AbbVie's EPS of $2.16 surpassed their consensus estimate of $2.13, although it was a decrease from $2.79 in the same quarter last year.
AbbVie's stock rose by 4% following the earnings report, as noted by Market Watch. The company attributed this to the success of its newer immunology drugs, which are offsetting the decline in Humira sales. Humira's sales dropped by 49% to $1.68 billion, more than the anticipated $1.99 billion. Despite this, AbbVie remains optimistic about 2025, boosting investor confidence.
AbbVie projects its 2025 profit to exceed estimates, driven by strong sales of Skyrizi and Rinvoq. These drugs are expected to generate over $31 billion in revenue by 2027, an increase of $4 billion from previous estimates. Specifically, Skyrizi revenues are forecasted to exceed $20 billion, while Rinvoq revenues are expected to surpass $11 billion by 2027.
Financially, AbbVie has a high price-to-earnings (P/E) ratio of 65.42, indicating investor confidence in its future earnings. However, the company has a high debt-to-equity ratio of 11.78, suggesting significant reliance on debt. The current ratio of 0.65 indicates potential challenges in covering short-term liabilities with short-term assets.
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