Why AbbVie Stock Flopped on Friday
Key Points
Despite the pharmaceutical giant's beat-and-raise third quarter, investors were expecting better.
Profitability guidance, even though it was raised, came in under analyst estimates.
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AbbVie's (NYSE: ABBV) products are regularly used to help heal the sick, but the company's stock wasn't healthy for portfolios on Friday. The company published its latest quarterly earnings release, and investors expressed their displeasure with it by selling out of the stock. It declined by more than 4% in price that trading session, contrasting unfavorably with the 0.3% gain of the S&P 500 index.
The power of blockbusters
For its third quarter, AbbVie reaped just under $15.78 billion in revenue, which was 9% higher on a year-over-year basis. This was led by the company's enviable collection of blockbuster drugs; Skyrizi experienced a 47% increase in net revenue to $4.7 billion, for example, while Rinvoq advanced 35% to generate $2.2 billion for the top line.
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On the bottom line, AbbVie garnered $3.3 billion ($1.86 per share) in net income not according to generally accepted accounting principles (GAAP). That was up from the $2.3 billion in the same quarter of 2024.
Both headline figures topped the consensus analyst estimates of $15.58 billion for revenue, and $1.78 per share for non-GAAP (adjusted) net income.
In its earnings release, AbbVie quoted CEO Robert Michael as saying that the company benefited from "significant momentum across key areas of our portfolio."
"We are also making great progress advancing our pipeline and investing in innovation to support AbbVie's long-term growth," he added.
Not a high enough raise for some
With that firmly in mind, AbbVie raised its adjusted net income guidance for the entirety of 2025. It is now $10.61 to $10.65 per share, up from the previous $10.38 to $10.58. Crucially, the revised range is below the consensus analyst estimate of $10.86, however.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.
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