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Sep 30, 2023

AbbVie Q3 2023 Earnings Report

AbbVie's Q3 2023 financial results were reported, demonstrating strong performance in the non-Humira growth platform.

Key Takeaways

AbbVie reported Q3 2023 net revenues of $13.927 billion, a decrease of 6.0 percent. The company's adjusted diluted EPS was $2.95. AbbVie raised its full-year 2023 adjusted diluted EPS guidance and its floor EPS outlook for next year and increased its quarterly dividend.

Third-quarter diluted EPS was $1.00 on a GAAP basis, a decrease of 54.8 percent; adjusted diluted EPS was $2.95, a decrease of 19.4 percent.

Net revenues reached $13.927 billion, a decrease of 6.0 percent on a reported basis and 5.8 percent on an operational basis.

Global net revenues from the immunology portfolio were $6.783 billion, a decrease of 11.3 percent.

The company raised its 2023 adjusted diluted EPS guidance range from $10.86 - $11.06 to $11.19 - $11.23.

Total Revenue
$13.9B
Previous year: $14.8B
-6.0%
EPS
$2.95
Previous year: $3.66
-19.4%
Gross Margin Ratio (GAAP)
53.4%
Adjusted Gross Margin Ratio
83.5%
SG&A Expense (GAAP)
24.2%
Gross Profit
$7.44B
Previous year: $9.79B
-24.0%
Cash and Equivalents
$13.3B
Previous year: $11.8B
+12.3%
Free Cash Flow
$7.36B
Previous year: $7.43B
-0.9%
Total Assets
$136B
Previous year: $141B
-3.6%

AbbVie

AbbVie

AbbVie Revenue by Segment

AbbVie Revenue by Geographic Location

Forward Guidance

AbbVie is raising its adjusted diluted EPS guidance for the full year 2023 from $10.86 - $11.06 to $11.19 - $11.23, which includes an unfavorable impact of $0.27 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2023. AbbVie is raising its adjusted diluted EPS guidance floor for the full year 2024 from $10.70 to $11.00, which excludes any impact from acquired IPR&D and milestones.

Positive Outlook

  • Raises 2023 Adjusted Diluted EPS Guidance Range from $10.86 - $11.06 to $11.19 - $11.23
  • Raises 2024 Adjusted Diluted EPS Guidance Floor from $10.70 to $11.00
  • Announces 2024 Dividend Increase of 4.7 Percent
  • Continuing AbbVie’s strong commitment to returning cash to shareholders through a growing dividend.
  • AbbVie has increased its quarterly dividend by more than 285 percent since the company's inception in 2013.

Challenges Ahead

  • Includes an Unfavorable Impact of $0.27 Per Share Related to Acquired IPR&D and Milestones Expense Incurred Year-To-Date Through the Third Quarter 2023
  • Worldwide net revenues were $13.927 billion, a decrease of 6.0 percent on a reported basis
  • Global net revenues from the immunology portfolio were $6.783 billion, a decrease of 11.3 percent.
  • Global net revenues from the oncology portfolio were $1.512 billion a decrease of 8.4 percent on a reported basis
  • Global net revenues from the aesthetics portfolio were $1.239 billion, a decrease of 4.7 percent on a reported basis

Revenue & Expenses

Visualization of income flow from segment revenue to net income