AbbVie (NYSE: ABBV) stock price rally received backing from dividend increase and stronger than expected guidance for the full year. Its shares grew more than 20% from 52-weeks low that it had hit three months ago.
The stock price is down almost 11% year to date. ABBV shares are currently trading around $80, down from this year high of $91 a share.
The third-quarter results supported bullish sentiments for AbbVie stock price. Its revenue and earnings also topped analysts’ consensus estimates.
Third Quarter Results Adds to AbbVie Stock Price
Its third-quarter revenue of $8.5 billion increased 3% year over year. The revenue growth is driven by U.S. HUMIRA net revenues of $3.887 billion. This represents a boost of 9.6% from the same period last year.
The global revenues from the Hematologic Oncology portfolio came in at $1.478 billion, up 38.3% Y/Y. Its Q3 global IMBRUVICA revenues stood at $1.257 billion, indicating a growth of 29.3% year over year.
“Strong performance from our Immunology and Hematologic Oncology portfolios led our growth this quarter. We are also making excellent progress with several key strategic priorities, including the recent launch of our two new immunology therapies – Rinvoq and Skyrizi,” said Richard A. Gonzalez, chairman, and chief executive officer, AbbVie.
The company has turned revenue growth into big profits. It generated adjusted net earnings per share of $2.33 in the third quarter. Q3 earnings per share topped analysts’ estimate by $0.03 per share.
Dividend Growth and Strong Guidance Are Price Catalysts
ABBV has raised the quarterly dividend by 10.3% to $1.18 per share, yielding around 6%. It has increased quarterly dividends in the past six consecutive years.
AbbVie has also increased the outlook for the rest of the year. AbbVie raised its previously announced adjusted EPS guidance range to $8.90 – $8.92. The previous guidance for earnings were around $8.82 to $8.92, representing a growth of 12.6% at the midpoint.