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AbbVie's (ABBV) Q2 Earnings In Line, 2021 Guidance Raised
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AbbVie Inc. (ABBV - Free Report) reported earnings of $3.11 per share for the second quarter of 2021, which met the Zacks Consensus Estimate but exceeded the company’s guided range of $3.05-$3.09. Earnings rose 32.9% year over year.
The company’s revenues of $13.96 billion beat the Zacks Consensus Estimate of $13.71 billion as well as the company’s expectation of $13.6 billion. The top line improved 33.9% year over year on a reported basis and 19.3% on an operational basis.
Please note that AbbVie completed the acquisition of Allergan in May 2020. The comparable operational growth rate includes full quarter, current year, and historical results for Allergan, as if the acquisition closed on Jan 1, 2019, at constant currency rates.
AbbVie’s shares have gained 11% so far this year compared with the industry’s 12.3% increase.
Image Source: Zacks Investment Research
Quarter in Detail
In immunology, key drug Humira recorded sales increase of 3.6% on an operational basis year over year with revenues from the same coming in at $5.1 billion. Sales in the United States climbed 7.1% to $4.26 billion. However, Humira sales in the ex-U.S. markets were down 12.6% on an operational basis to $811 million. International sales were affected by the launch of several direct biosimilar drugs in Europe by other pharma companies including Amgen (AMGN - Free Report) , Sandoz and Biogen.
New immunology drugs, Skyrizi and Rinvoq registered sales of $674 million and $378 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $574 million and $303, respectively. Strong sequential growth in sales of both drugs in the last couple of quarters reflects strong uptake.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 13.2% on an operational basis to $1.82 billion in the quarter, driven by strong growth of both Imbruvica and Venclexta.
Second-quarter net revenues from Imbruvica were $1.38 billion, up 7.2% year over year. U.S. sales of Imbruvica grossed $1.1 billion, up 4.3% from the year-ago figure. AbbVie’s share of profit from International sales of the drug rose 20.6% to $282 million. Notably, AbbVie shares international profits earned from Imbruvica with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta generated revenues of $435 million in the reported quarter, reflecting growth of 38.3% year over year on an operational basis. AbbVie has a partnership with Roche (RHHBY - Free Report) for Venclexta.
AbbVie’s aesthetics portfolio sales more than doubled on a reported as well as operational basis to $1.43 billion on the back of robust demand for Botox Cosmetic whose sales also more than doubled to $584 million.
Sales of neuroscience portfolio increased 29.6% operationally to $1.46 billion driven by Botox Therapeutic and Vraylar. While Botox Therapeutic sales rose 38.6% to $603 million, sales of Vraylar were up 25.8% to $432 million. AbbVie’s newly launched oral migraine drug, Ubrelvy, generated $126 million in revenues, compared with $81 million in the first quarter 2021.
Eye care portfolio sales gained 24.1% on an operational basis to $919 million. Sales of a key drug in the portfolio, Restasis, increased 24.6% year over year to $327 million.
Other products that delivered an encouraging performance include Creon and Linzess, which recorded revenue growth of 11% and 18.6%, respectively, on an operational basis. Sales of Mavyret increased 13.9% operationally to $442 million. However, sales of Women's Health portfolio decreased 17%, operationally. Sales of Lupron declined 5.3%.
Adjusted SG&A expenses increased 23.5% to $2.95 billion while R&D expenses were $1.58 billion in the second quarter, rising 18.8% year over year. Adjusted operating margin represented 49.7% of sales.
2021 Guidance Raised
AbbVie raised its adjusted earnings per share (“EPS”) guidance for 2021. The company now expects adjusted EPS to be in the range of $12.52-$12.62 compared with the previously issued guidance of $12.37-$12.57. The increased earnings expectations reflect robust demand for AbbVie’s products amid the COVID-19 pandemic. However, the company’s guided range falls short of the Zacks Consensus of $12.65 per share.
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AbbVie's (ABBV) Q2 Earnings In Line, 2021 Guidance Raised
AbbVie Inc. (ABBV - Free Report) reported earnings of $3.11 per share for the second quarter of 2021, which met the Zacks Consensus Estimate but exceeded the company’s guided range of $3.05-$3.09. Earnings rose 32.9% year over year.
The company’s revenues of $13.96 billion beat the Zacks Consensus Estimate of $13.71 billion as well as the company’s expectation of $13.6 billion. The top line improved 33.9% year over year on a reported basis and 19.3% on an operational basis.
Please note that AbbVie completed the acquisition of Allergan in May 2020. The comparable operational growth rate includes full quarter, current year, and historical results for Allergan, as if the acquisition closed on Jan 1, 2019, at constant currency rates.
AbbVie’s shares have gained 11% so far this year compared with the industry’s 12.3% increase.
Image Source: Zacks Investment Research
Quarter in Detail
In immunology, key drug Humira recorded sales increase of 3.6% on an operational basis year over year with revenues from the same coming in at $5.1 billion. Sales in the United States climbed 7.1% to $4.26 billion. However, Humira sales in the ex-U.S. markets were down 12.6% on an operational basis to $811 million. International sales were affected by the launch of several direct biosimilar drugs in Europe by other pharma companies including Amgen (AMGN - Free Report) , Sandoz and Biogen.
New immunology drugs, Skyrizi and Rinvoq registered sales of $674 million and $378 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $574 million and $303, respectively. Strong sequential growth in sales of both drugs in the last couple of quarters reflects strong uptake.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 13.2% on an operational basis to $1.82 billion in the quarter, driven by strong growth of both Imbruvica and Venclexta.
Second-quarter net revenues from Imbruvica were $1.38 billion, up 7.2% year over year. U.S. sales of Imbruvica grossed $1.1 billion, up 4.3% from the year-ago figure. AbbVie’s share of profit from International sales of the drug rose 20.6% to $282 million. Notably, AbbVie shares international profits earned from Imbruvica with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta generated revenues of $435 million in the reported quarter, reflecting growth of 38.3% year over year on an operational basis. AbbVie has a partnership with Roche (RHHBY - Free Report) for Venclexta.
AbbVie’s aesthetics portfolio sales more than doubled on a reported as well as operational basis to $1.43 billion on the back of robust demand for Botox Cosmetic whose sales also more than doubled to $584 million.
Sales of neuroscience portfolio increased 29.6% operationally to $1.46 billion driven by Botox Therapeutic and Vraylar. While Botox Therapeutic sales rose 38.6% to $603 million, sales of Vraylar were up 25.8% to $432 million. AbbVie’s newly launched oral migraine drug, Ubrelvy, generated $126 million in revenues, compared with $81 million in the first quarter 2021.
Eye care portfolio sales gained 24.1% on an operational basis to $919 million. Sales of a key drug in the portfolio, Restasis, increased 24.6% year over year to $327 million.
Other products that delivered an encouraging performance include Creon and Linzess, which recorded revenue growth of 11% and 18.6%, respectively, on an operational basis. Sales of Mavyret increased 13.9% operationally to $442 million. However, sales of Women's Health portfolio decreased 17%, operationally. Sales of Lupron declined 5.3%.
Adjusted SG&A expenses increased 23.5% to $2.95 billion while R&D expenses were $1.58 billion in the second quarter, rising 18.8% year over year. Adjusted operating margin represented 49.7% of sales.
2021 Guidance Raised
AbbVie raised its adjusted earnings per share (“EPS”) guidance for 2021. The company now expects adjusted EPS to be in the range of $12.52-$12.62 compared with the previously issued guidance of $12.37-$12.57. The increased earnings expectations reflect robust demand for AbbVie’s products amid the COVID-19 pandemic. However, the company’s guided range falls short of the Zacks Consensus of $12.65 per share.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. price-consensus-eps-surprise-chart | AbbVie Inc. Quote
Zacks Rank
Currently, AbbVie is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.