AbbVie Inc . (NYSE:ABBV), a global biopharmaceutical company with a market capitalization of $317.77 billion and a robust EBITDA of $25.63 billion, disclosed today that its fourth-quarter earnings for 2024 will be impacted by significant research and development expenses. According to InvestingPro analysis, AbbVie maintains a GOOD financial health score, with particularly strong profitability metrics. The company, based in North Chicago, Illinois, expects an unfavorable effect of $0.88 per share due to acquired in-process research and development (IPR&D) and milestones expense, totaling $1.6 billion on a pre-tax basis.
These preliminary figures are part of AbbVie's financial results for the quarter ended December 31, 2024, which have not yet been finalized and are subject to the company's financial statement closing procedures. AbbVie cautions that the final results could differ from these initial estimates.
The company's full-year 2024 adjusted diluted earnings per share guidance, including the impact of the fourth-quarter expenses, is now anticipated to be between $10.02 and $10.06. For the fourth quarter alone, the adjusted diluted earnings per share is projected to range from $2.06 to $2.10. Trading at $180.14, InvestingPro analysis suggests the stock is slightly above its Fair Value, with analyst targets ranging from $165 to $240 per share. Discover 10+ additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
The company also included forward-looking statements, cautioning that actual results may vary due to risks and uncertainties. Despite these uncertainties, InvestingPro data indicates that AbbVie has maintained dividend payments for 13 consecutive years and is expected to remain profitable this year. Access the detailed Pro Research Report, available for 1,400+ US stocks, to gain deeper insights into AbbVie's financial health and growth prospects. These include challenges to intellectual property, competition, research and development difficulties, adverse litigation or government action, and changes in industry regulations.
In other recent news, AbbVie has been making significant strides with its financial performance and strategic acquisitions. The pharmaceutical company reported strong Q3 revenues of nearly $14.5 billion, surpassing expectations with an operational growth of 4.9%. AbbVie has also raised its full-year revenue guidance by $500 million and adjusted EPS guidance to $10.90-$10.94.
AbbVie has recently acquired Nimble Therapeutics for $200 million, aiming to leverage Nimble's expertise in the development of treatments for serious health conditions. Another strategic acquisition was Aliada Therapeutics, which added ALIA-1758, a promising Alzheimer's disease therapy, to AbbVie's neuroscience pipeline.
Analysts from TD Cowen and Leerink Partners have expressed positive stances on AbbVie, naming it a top pick for 2025 and upgrading the stock to Outperform, respectively. These upgrades reflect strong revenue and earnings per share growth. Piper Sandler has also raised its price target for AbbVie to $220, maintaining an Overweight rating on the stock.
AbbVie has also reported positive results from its Phase 3 TEMPO-2 trial of tavapadon, a potential treatment for early Parkinson's disease. The trial met its primary and key secondary endpoints, demonstrating significant improvement in motor function in patients treated with tavapadon. These are recent developments that indicate ongoing advancements and growth at AbbVie.
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