AbbVie Inc. (ABBV - Free Report) posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. Moreover, the company raised its expectations for 2018 bottom line. In response, shares too climbed almost 2.5% in pre-market trading.
Shares of AbbVie have surged 42.8% in a year’s time, significantly outperforming the industry’s 3.7% rise.
The biopharmaceutical company reported earnings of $1.87 per share in the first quarter, beating the Zacks Consensus Estimate of $1.80 by 3.9%. Also, the figure grew 46.1% year over year. Earnings also surpassed the previous expected range of $1.77 and $1.79.
The company posted revenues of $7.9 billion in the quarter under review, marginally trumping the Zacks Consensus Estimate of $7.7 billion. The top line also increased 21.4% year over year. Excluding a 3.8% favorable impact from foreign exchange rate fluctuations, operational revenues rose 17.6%. Revenues showed higher growth compared with the previous projection in mid-teen range on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 10.7% on an operational basis with revenues coming in at $4.7 billion. Sales in the United States increased 11.4% to $3 billion. Humira sales in the ex-U.S. market were up 9.3% on an operational basis and 20% on reported basis to $1.71 billion. Growth across all three major market categories drove this upside despite stiffer competition from new classes of drugs as well as an indirect biosimilar contest in the international markets.
First-quarter net revenues from Imbruvica were $762 million, up 38.5% year over year. U.S. sales of Imbruvica grossed $624 million, up 36.7% compared with the year-ago figure. AbbVie logged $138 million of international profit sharing with Johnson & Johnson (JNJ - Free Report) .
Other products having delivered an impressive performance include Duodopa showing revenue growth of 16.5% on operational and 28.9% on reported basis. Another product called Creon witnessed an ascent of 13% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) product recorded sales of $919 million, significantly up 80.2% compared with the last report.
Adjusted SG&A expenses increased 21.4% to $1.67 billion while R&D expenses escalated 7.2% to $1.19 billion in the first quarter. Adjusted operating margin was 44.1% of sales.
Notably, in first-quarter earnings, AbbVie announced its intention to commence a tender offer to purchase shares of its common stock for a cash value up to $7.5 billion. The company expects to initiate the same as early as May 1, 2018.
2018 Outlook
AbbVie raised its adjusted EPS in the range of $7.66-$7.76 for 2018 compared with $7.33-$7.43, predicted earlier. The earnings guidance reflects a year-over-year surge of 38% at the mid-point. The Zacks Consensus Estimate for the metric in the current year is pegged at $7.57 per share.
Zacks Rank & Key Picks
AbbVie carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the health care sector are Ligand Pharmaceuticals Incorporated (LGND - Free Report) and Infinity Pharmaceuticals, Inc. , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved up from $3.92 to $4.40 for 2018 and from $4.75 to $5.32 for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 39.1% over a year.
Infinity’s loss per share estimates have narrowed from $1.69 to 74 cents for 2018 and from 94 cents to 66 cents for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 7.87%.
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AbbVie Inc. (ABBV - Free Report) posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. Moreover, the company raised its expectations for 2018 bottom line. In response, shares too climbed almost 2.5% in pre-market trading.
Shares of AbbVie have surged 42.8% in a year’s time, significantly outperforming the industry’s 3.7% rise.
The biopharmaceutical company reported earnings of $1.87 per share in the first quarter, beating the Zacks Consensus Estimate of $1.80 by 3.9%. Also, the figure grew 46.1% year over year. Earnings also surpassed the previous expected range of $1.77 and $1.79.
The company posted revenues of $7.9 billion in the quarter under review, marginally trumping the Zacks Consensus Estimate of $7.7 billion. The top line also increased 21.4% year over year. Excluding a 3.8% favorable impact from foreign exchange rate fluctuations, operational revenues rose 17.6%. Revenues showed higher growth compared with the previous projection in mid-teen range on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 10.7% on an operational basis with revenues coming in at $4.7 billion. Sales in the United States increased 11.4% to $3 billion. Humira sales in the ex-U.S. market were up 9.3% on an operational basis and 20% on reported basis to $1.71 billion. Growth across all three major market categories drove this upside despite stiffer competition from new classes of drugs as well as an indirect biosimilar contest in the international markets.
First-quarter net revenues from Imbruvica were $762 million, up 38.5% year over year. U.S. sales of Imbruvica grossed $624 million, up 36.7% compared with the year-ago figure. AbbVie logged $138 million of international profit sharing with Johnson & Johnson (JNJ - Free Report) .
Other products having delivered an impressive performance include Duodopa showing revenue growth of 16.5% on operational and 28.9% on reported basis. Another product called Creon witnessed an ascent of 13% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) product recorded sales of $919 million, significantly up 80.2% compared with the last report.
Adjusted SG&A expenses increased 21.4% to $1.67 billion while R&D expenses escalated 7.2% to $1.19 billion in the first quarter. Adjusted operating margin was 44.1% of sales.
Notably, in first-quarter earnings, AbbVie announced its intention to commence a tender offer to purchase shares of its common stock for a cash value up to $7.5 billion. The company expects to initiate the same as early as May 1, 2018.
2018 Outlook
AbbVie raised its adjusted EPS in the range of $7.66-$7.76 for 2018 compared with $7.33-$7.43, predicted earlier. The earnings guidance reflects a year-over-year surge of 38% at the mid-point. The Zacks Consensus Estimate for the metric in the current year is pegged at $7.57 per share.
Zacks Rank & Key Picks
AbbVie carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the health care sector are Ligand Pharmaceuticals Incorporated (LGND - Free Report) and Infinity Pharmaceuticals, Inc. , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved up from $3.92 to $4.40 for 2018 and from $4.75 to $5.32 for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 39.1% over a year.
Infinity’s loss per share estimates have narrowed from $1.69 to 74 cents for 2018 and from 94 cents to 66 cents for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 7.87%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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