AbbVie Cuts 2024 Earnings Guidance to Include Acquisition Costs
AbbVie ABBV announced in a regulatory filing that it is lowering its previously issued guidance for 2024 adjusted earnings per share by 4 cents per share to account for acquired in-process research and development (IPR&D) expenses incurred for acquisitions and collaborations in the third quarter. AbbVie is set to report its third-quarter results on Oct. 30.
The adjusted earnings guidance for 2024 was lowered from $10.71-$10.91 per share to $10.67 - $10.87 to account for acquisition costs of $82 million on a pre-tax basis. The Zacks Consensus Estimate for earnings is pegged at $10.87 per share. The initial guided range already included 60 cents per share of acquired IPR&D already recorded in the first half of 2024.
In the quarter, AbbVie completed the previously announced acquisition of neuroscience drugmaker Cerevel Therapeutics. The acquisition will strengthen AbbVie’s neuroscience pipeline by adding Cerevel’s lead pipeline candidate emraclidine, an M4-selective positive allosteric modulator, which is being evaluated in two phase II studies for treating schizophrenia.
AbbVie stock has gained 26.2% so far this year compared with an increase of 19.8% for the industry. The stock has also outperformed the sector and the S&P 500 index, as seen in the chart below.
ABBV Stock Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Including the acquired IPR&D and milestones expense, the third-quarter adjusted earnings per share range was lowered to $2.88-$2.92 from the prior expectation of $2.92-$2.96 per share. The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.95 per share.
There is no change in AbbVie’s previously issued guidance range for total revenues. In 2024, total revenues are expected to be approximately $55.5 billion. In the third quarter of 2024, net revenues are expected to be approximately $14.2 billion.
ABBV’s Zacks Rank & Stocks to Consider
AbbVie has a Zacks Rank #3 (Hold) currently.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Some better-ranked large drugmakers are Eli Lilly LLY, Bayer BAYRY and AstraZeneca AZN. While Lilly sports a Zacks Rank #1 (Strong Buy), Bayer and AstraZeneca have a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Lilly’s 2024 earnings have risen from $13.79 to $16.49 per share over the past 60 days. For 2025, earnings estimates have risen from $19.44 to $23.99 per share over the same timeframe. Year to date, Lilly’s stock has risen 51.9%.
Lilly beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 69.07%.
Estimates for Bayer’s 2024 earnings per share have increased from $1.35 to $1.38 over the past 60 days, while those for 2025 have risen from $1.42 to $1.44 per share. Bayer’s shares have declined 10.6% year to date.
The Zacks Consensus Estimate for AstraZeneca’s earnings has risen from $4.04 to $4.07 per share for 2024 over the past 60 days, while that for 2025 has remained stable at $4.71 per share. AstraZeneca’s shares have risen 15.7% year to date.
AstraZeneca beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 4.74%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report