AbbVie stock retook its 200-day moving average Friday after the company raised its long-term outlook for immunology powerhouses Skyrizi and Rinvoq by $4 billion.
The company now projects more than $31 billion in 2027 sales for the two immunology drugs, up from its previous guidance for $27 billion. But AbbVie cut its outlook for aesthetics sales, which includes household name Botox, William Blair analyst Matt Phipps said. He remained upbeat.
"AbbVie continues to have one of the cleanest revenue growth stories in the biopharma space over the next five years, driven by the dominance of Skyrizi and Rinvoq," he said in a report. "While the aesthetics business is experiencing some headwinds globally, we believe the overall growth profile and potential for pipeline readouts over the next two years could continue driving upside to longer-term numbers."
AbbVie Stock Surges: Sales, Earnings Beat
AbbVie stock jumped 4.7% to close at 183.90. Shares have spent the better part of this month trapped below their 200-day line, according to MarketSurge.
Across all products, AbbVie generated $15.1 billion in sales and adjusted profit of $2.16 per share. Sales grew 5.6% and beat forecasts for $14.83 billion, according to FactSet. Earnings sank almost 23% but topped expectations for $2.12. Earnings took an 88-cent hit due to tax charges and milestone costs.
Importantly, AbbVie's immunological powerhouses, Skyrizi and Rinvoq, generated a respective $3.78 billion and $1.83 billion in sales. Skyrizi revenue rocketed nearly 58% vs. the year-earlier period, while Rinvoq sales jumped more than 46%. Both beat expectations and helped offset a sales miss for Humira.
Humira is AbbVie's former immunology kingpin. But it began facing off with lower-cost biosimilars in 2023. Humira brought in $1.68 billion in sales, down more than 49% and missing forecasts for $1.95 billion, Piper Sandler analyst Christopher Raymond said in a report.
Still, he has an overweight rating on AbbVie stock, noting "Skyrizi and Rinvoq more than made up for the (Humira) miss."
Other Products Were Mixed
Oncology sales were mixed. Imbruvica beat expectations with $848 million, down roughly 6%, while Venclexta sales fell 11% and lagged forecasts. But Botox sales missed forecasts at $687 million, and fell more than 4% year over year.
"Sales of aesthetic products were weaker than the consensus view, but may rebound over time as economic conditions improve," Edward Jones analyst John Boylan said in a report.
He has a hold rating on AbbVie stock.
Notably, Botox as a therapeutic to treat migraines and reduce sweating generated $873 million, slightly ahead of forecasts for $870 million, Piper Sandler's Raymond said. It's important to note, though, that he had a higher $891 million estimate.
AbbVie expects to earn $12.12 to $12.32 per share this year, on an adjusted basis. The midpoint of the earnings outlook missed expectations for $12.15. But, longer term, AbbVie expects its sales to grow by a high single-digit compound annual rate through 2029.
