AbbVie Inc. (NYSE:ABBV) Earnings Preview: Key Insights

• Rinvoq and Skyrizi are central to AbbVie's upcoming financial report, with investors closely monitoring their performance.
• The company is expected to exceed revenue and EPS estimates for Q4 2024, driven by its immunology and neuroscience products.
• Despite a high debt-to-equity ratio of 11.78, AbbVie's financial metrics suggest a robust market valuation, with a P/E ratio of 60.53.

AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company known for its innovative treatments in immunology, oncology, and neuroscience. The company is set to release its fourth-quarter and full-year 2024 earnings on January 31, 2025. Investors are keenly watching the performance of its key immunology drugs, Rinvoq and Skyrizi, which are expected to be central to the upcoming financial report.

The Zacks Consensus Estimate forecasts AbbVie's quarterly sales at $14.92 billion and earnings of $2.09 per share. Despite a slight decline in earnings estimates for 2025, from $12.27 to $12.17 per share, AbbVie has a history of surpassing expectations. Over the last four quarters, the company has achieved an average earnings surprise of 2.29%, with the most recent quarter showing a 2.74% surprise.

Wall Street analysts predict AbbVie will exceed revenue and EPS estimates for Q4 2024, driven by the success of Skyrizi, Rinvoq, and its neuroscience products. These gains are helping offset the decline in Humira sales. Management anticipates a return to mid-single-digit revenue growth in 2025, aligning with analyst consensus for the full year.

Despite setbacks with emraclidine's failed Phase 2 trials, AbbVie remains committed to its development, exploring its potential as an adjunctive treatment. The company recorded a $3.5 billion impairment charge due to accounting rules, leading analysts to exclude potential revenue from emraclidine in forecasts. Any future advancements are seen as a bonus, provided development costs remain reasonable.

AbbVie's financial metrics provide insight into its market valuation. The company has a P/E ratio of 60.53, a price-to-sales ratio of 5.58, and an enterprise value to sales ratio of 6.73. Its high debt-to-equity ratio of 11.78 highlights significant leverage, while a current ratio of 0.65 indicates its ability to cover short-term liabilities.