AbbVie Inc. (NYSE:ABBV) rallied by more than 3% on Q4 profit and revenues, beating estimates. An impressive 2021 outlook also helped strengthen investor’s sentiments in the stock. In addition to earnings topping estimates, the company achieved significant milestones, key among them being the completion of the Allergan acquisition.
Top Line Results
According to Chief Executive Officer Richard Gonzalez, AbbVie remains well positioned for robust growth in 2021 supported by a broad portfolio of diversified growth assets. Momentum is the core business is also expected to gather pace.
Net revenues in the quarter totaled $13.85 billion, representing a 59.2% year over year increase. In contrast, analysts were expecting the company to post revenues of $13.7 billion. The immunology portfolio's net revenues were up 15.3% to $5.958 billion on a reported basis and 14.8% on an operational basis. Net revenues in the hematologic oncology portfolio totaled $1.789 billion, a 15.7% increase.
Humira remained AbbVie's top-selling product bringing in $5.1 billion, a 4.8% year-over-year increase. A 9.4% decline in international sales was fairly offset by an 8.2% increase in the U.S. Sales for Rinvoq and Skyrizi totaled $281 million and $525 million, respectively.
Net income came in at $36 million or $0.01 a share. This was a steep decline from $2.8 billion or $1.88 a share reported the previous year. However, the company posted adjusted earnings of $2.92 a share, up from $2.21 reported a year earlier. Adjusted earnings beat consensus estimates of $2.85 a share.
AbbVie Outlook
AbbVie is projecting earnings per share of between $6.69 to $6.89 a share on GAAP diluted basis for the current year. Likewise, the company expects to deliver adjusted EPS of between $12.32 and $12.52 a share.
AbbVie achieved significant milestones in the quarter, key among them securing regulatory approval of Rinvoq to treat adults with active psoriatic arthritis in Europe. The company also announced top-line results from Phase 3b Heads Up study that shows Rinvoq's edge in the treatment of Eczema.