10-QPeriod: Q3 FY2017

AbbVie Inc. Quarterly Report for Q3 Ended Sep 30, 2017

Filed November 7, 2017For Securities:ABBV

Summary

AbbVie Inc.'s third-quarter 2017 10-Q filing reveals a solid financial performance, demonstrating growth in net revenues and earnings. The company reported an 8.8% increase in worldwide net revenues to $7.0 billion for the quarter and a 9% increase to $20.5 billion for the first nine months of the year, primarily driven by the strong performance of Humira and Imbruvica. Diluted earnings per share for the nine months reached $3.27, up from $2.78 in the prior year period. The company also highlighted significant investments in its R&D pipeline, focusing on immunology, oncology, and neurology, with over 30 compounds in mid- to late-stage development. AbbVie continued to return value to shareholders through increased dividends and share repurchases, signaling confidence in its ongoing business strategy and future prospects.

Financial Highlights

53 data points
Beta

Revenue

$7.00B

76.9% Gross Margin

Net Income

$1.63B

23.3% Net Margin

EPS (Diluted)

$1.01

Total Assets

$68.84B

Cash & Equivalents

$8.45B

Free Cash Flow

$3.15B

Financial Statements
Beta
Revenue$7.00B
Cost of Revenue$1.62B
Gross Profit$5.38B
SG&A Expenses$1.46B
Operating Expenses$4.30B
Operating Income$2.69B
Interest Expense$293.00M
Net Income$1.63B
EPS (Basic)$1.02
EPS (Diluted)$1.01
Shares Outstanding (Basic)1.60B
Shares Outstanding (Diluted)1.60B

Key Highlights

  • 1AbbVie reported an 8.8% increase in net revenues to $6.995 billion for Q3 2017 and an 8.7% increase to $20.477 billion for the first nine months of 2017.
  • 2Diluted earnings per share (EPS) increased to $1.01 for Q3 2017 and $3.27 for the nine months ended September 30, 2017, up from $0.97 and $2.78 respectively in the prior year.
  • 3Humira remained a key revenue driver, with global sales increasing by 15% for the nine-month period, reaching $13.5 billion.
  • 4Imbruvica demonstrated strong growth, with global sales up 41.2% for the nine-month period to $1.865 billion.
  • 5Research and development expenses increased by 13% to $3.580 billion for the nine months ended September 30, 2017, reflecting continued investment in pipeline development.
  • 6The company generated $7.376 billion in cash flow from operating activities for the first nine months of 2017.
  • 7AbbVie announced an 11% increase in its quarterly cash dividend to $0.71 per share, payable in February 2018, and maintained a substantial stock repurchase program.

Frequently Asked Questions

AbbVie reported an 8.8% increase in worldwide net revenues to $6.995 billion for the third quarter ended September 30, 2017, compared to $6.432 billion in the same period of 2016. This growth was driven by strong performance from key products like Humira and Imbruvica.

For the first nine months of 2017, Humira's global sales increased by 14.8% to $13.535 billion, and Imbruvica's global sales grew by 41.2% to $1.865 billion. These products were significant contributors to the company's overall revenue growth.

AbbVie continues to prioritize research and development, with R&D expenses increasing by 13% to $3.580 billion for the first nine months of 2017. The company is focusing its pipeline on key therapeutic areas including immunology, oncology, virology, and neurology, with over 30 compounds in mid- to late-stage development.

AbbVie demonstrated a commitment to returning capital through dividends and share repurchases. The company declared a quarterly cash dividend of $0.71 per share, an 11% increase, and continued its stock repurchase program, with $4.5 billion remaining authorization as of September 30, 2017.