AbbVie Beats Earnings Expectations as Sales Surge

AbbVie exceeds Wall Street's expectations despite the challenges of the global pandemic.
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AbbVie  (ABBV) - Get Report surpassed Wall Street's fourth-quarter earnings expectations on 59% higher sales.

Shares of the North Chicago, Ill., company at last check were 1.6% at $105.10.

AbbVie reported net income of $36 million, or 1 cent a share, down from $2.8 billion, or $1.88 a share, in the year-earlier quarter. The latest adjusted earnings came to $2.92 a share.  

Analysts surveyed by FactSet were expecting the company to report earnings of $2.85 a share.

The company said it recorded a $4.7 billion increase in the Skyrizi contingent consideration liability. That's due to higher estimated future sales driven by stronger market share uptake and favorable clinical trial results as well as lower interest rates. 

Skyrizi, a treatment for moderate to severe plaque psoriasis, is a collaboration between AbbVie and Germany's Boehringer Ingelheim. AbbVie leads development and commercialization of the product worldwide.

Revenue totaled $13.9 billion, up 59% and beating FactSet's call for $13.7 billion. 

Sales of Humira, the company's rheumatoid arthritis treatment, grew 4.8% to $5.15 billion, beating expectations of $5.11 billion.

AbbVie is going to lose U.S. exclusivity of Humira in 2023 and the company said it expected total sales to drop that year, with modest top-line growth in 2024. 

AbbVie said it expected a "rapid return to strong top-line growth in 2025, with a high-single-digit compound annual growth rate through the remainder of the decade."

For 2021, AbbVie said it expects earnings of $12.32 to $12.52 a share, while Wall Street is calling for earnings of $12.20 per share.

"We successfully completed the transformative Allergan acquisition and delivered another year of strong results in 2020, despite the challenges presented by the global pandemic," Chairman and CEO Richard Gonzalez said in a statement. 

"Based on our broad portfolio of diversified growth assets and the robust momentum of our business, we expect impressive growth again in 2021."

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