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AbbVie's (ABBV) Q2 Earnings Beat Estimates, Revenues Lag
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AbbVie Inc. (ABBV - Free Report) reported earnings of $3.37 per share for the second quarter of 2022, beating the Zacks Consensus Estimate of $3.31 and exceeding the guided range of $3.24-$3.28. Earnings rose 11.2% year over year.
ABBV’s revenues of $14.58 billion missed the Zacks Consensus Estimate of $14.65 billion. Sales rose 4.5% year over year on a reported basis and 6.1% on an operational basis. Sales were driven by Immunology and Neuroscience franchises, with key drugs like Venclexta and Botox Cosmetic contributing to the top line. This growth in sales was partially offset by lower sales of Imbruvica and Juvederm.
Sales of Imbruvica declined amid the rising competition from novel oral treatments, while Juvederm sales were hurt by the impact of COVID in China as well as suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers.
Shares of AbbVie were down 1.3% in pre-market trading on Jul 29 following the earnings announcement. AbbVie’s shares have gained 11.0% so far this year compared with the industry’s 2.8% increase.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, key drug Humira recorded a year-over-year sales rise of 6.8% to $5.36 billion on an operational basis. Sales in the United States climbed 9.6% to $4.66 billion, which more than offset the 7.3% decline in ex-U.S. market sales of $699 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 (BIIB - Free Report) .
Companies like Amgen, Sandoz and Biogen were the first to start commercializing a Humira-biosimilar in Europe in 2018. In fact, Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization is expected to start after the loss of exclusivity for Humira in the United States in 2023.
Net revenues recorded from Skyrizi sales in the second quarter were $1.25 billion, up 83.3% on an operational basis year over year. This significant growth can be attributed to the drug’s strong global uptake.
During the quarter, Rinvoq registered sales of $592 million, up 60.7% year over year on an operational basis. Ex-U.S. sales of Rinvoq more than doubled year over year during the quarter.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 7.9% on an operational basis to $1.65 billion in the quarter, driven by strong growth of Venclexta sales, more than offset by lower U.S. sales of Imbruvica.
Second-quarter net revenues from Imbruvica were $1.15 billion, down 17.1% year over year. AbbVie developed the drug in partnership with Johnson & Johnson (JNJ - Free Report) . ABBV shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $862 million, down 21.6% from the year-ago figure. Per management on J&J’s earnings call, the rising pressure in the United States due to new oral competition hurt sales of Imbruvica in the last few quarters. AbbVie’s share of profit from the international sales of the J&J-partnered drug rose 0.5% to $283 million.
ABBV’s leukemia drug Venclexta generated revenues of $505 million in the reported quarter, reflecting 21.2% year-over-year growth on an operational basis.
AbbVie’s aesthetics portfolio sales were down 2.1% on an operational basis to $1.37 billion as the decline in sales of Juvederm and other aesthetic drugs more than offset growth in the sales of Botox Cosmetic. Sales of Botox Cosmetic rose 21.2% on an operational basis to $695 million, while Juvederm’s sales declined 15.7% on an operational basis to $344 million.
Sales from the neuroscience portfolio increased 15.2% on an operational basis to $1.66 billion, driven by Botox Therapeutic and Vraylar along with additional sales from Ubrelvy. While Botox Therapeutic sales rose 14.5% to $678 million, sales of Vraylar increased 13.9% to $492 million. AbbVie’s newly launched oral migraine drug Ubrelvy generated $185 million of revenues compared with $138 million in the first quarter of 2022. Ubrelvy sales were up 47.6% on an operational basis year over year.
Eye care portfolio sales declined 19.3% on an operational basis to $717 million. Sales of Restasis, a key drug in the portfolio, decreased 48% year over year to $168 million.
Adjusted SG&A expenses increased 2.8% to $3.04 billion, while adjusted R&D expenses were $1.61 billion in the second quarter, up 1.5% year over year. The adjusted operating margin represented 51% of sales.
2022 Guidance
AbbVie confirmed its EPS guidance for 2022 to suggest the unfavorable impact of acquired IPR&D and milestone expenses incurred during the second quarter. ABBV expects adjusted EPS in the range of $13.78-$13.98. The Zacks Consensus Estimate for current-year earnings per share is pegged at $13.93.
Image: Shutterstock
AbbVie's (ABBV) Q2 Earnings Beat Estimates, Revenues Lag
AbbVie Inc. (ABBV - Free Report) reported earnings of $3.37 per share for the second quarter of 2022, beating the Zacks Consensus Estimate of $3.31 and exceeding the guided range of $3.24-$3.28. Earnings rose 11.2% year over year.
ABBV’s revenues of $14.58 billion missed the Zacks Consensus Estimate of $14.65 billion. Sales rose 4.5% year over year on a reported basis and 6.1% on an operational basis. Sales were driven by Immunology and Neuroscience franchises, with key drugs like Venclexta and Botox Cosmetic contributing to the top line. This growth in sales was partially offset by lower sales of Imbruvica and Juvederm.
Sales of Imbruvica declined amid the rising competition from novel oral treatments, while Juvederm sales were hurt by the impact of COVID in China as well as suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers.
Shares of AbbVie were down 1.3% in pre-market trading on Jul 29 following the earnings announcement. AbbVie’s shares have gained 11.0% so far this year compared with the industry’s 2.8% increase.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, key drug Humira recorded a year-over-year sales rise of 6.8% to $5.36 billion on an operational basis. Sales in the United States climbed 9.6% to $4.66 billion, which more than offset the 7.3% decline in ex-U.S. market sales of $699 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 (BIIB - Free Report) .
Companies like Amgen, Sandoz and Biogen were the first to start commercializing a Humira-biosimilar in Europe in 2018. In fact, Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization is expected to start after the loss of exclusivity for Humira in the United States in 2023.
Net revenues recorded from Skyrizi sales in the second quarter were $1.25 billion, up 83.3% on an operational basis year over year. This significant growth can be attributed to the drug’s strong global uptake.
During the quarter, Rinvoq registered sales of $592 million, up 60.7% year over year on an operational basis. Ex-U.S. sales of Rinvoq more than doubled year over year during the quarter.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 7.9% on an operational basis to $1.65 billion in the quarter, driven by strong growth of Venclexta sales, more than offset by lower U.S. sales of Imbruvica.
Second-quarter net revenues from Imbruvica were $1.15 billion, down 17.1% year over year. AbbVie developed the drug in partnership with Johnson & Johnson (JNJ - Free Report) . ABBV shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $862 million, down 21.6% from the year-ago figure. Per management on J&J’s earnings call, the rising pressure in the United States due to new oral competition hurt sales of Imbruvica in the last few quarters. AbbVie’s share of profit from the international sales of the J&J-partnered drug rose 0.5% to $283 million.
ABBV’s leukemia drug Venclexta generated revenues of $505 million in the reported quarter, reflecting 21.2% year-over-year growth on an operational basis.
AbbVie’s aesthetics portfolio sales were down 2.1% on an operational basis to $1.37 billion as the decline in sales of Juvederm and other aesthetic drugs more than offset growth in the sales of Botox Cosmetic. Sales of Botox Cosmetic rose 21.2% on an operational basis to $695 million, while Juvederm’s sales declined 15.7% on an operational basis to $344 million.
Sales from the neuroscience portfolio increased 15.2% on an operational basis to $1.66 billion, driven by Botox Therapeutic and Vraylar along with additional sales from Ubrelvy. While Botox Therapeutic sales rose 14.5% to $678 million, sales of Vraylar increased 13.9% to $492 million. AbbVie’s newly launched oral migraine drug Ubrelvy generated $185 million of revenues compared with $138 million in the first quarter of 2022. Ubrelvy sales were up 47.6% on an operational basis year over year.
Eye care portfolio sales declined 19.3% on an operational basis to $717 million. Sales of Restasis, a key drug in the portfolio, decreased 48% year over year to $168 million.
Adjusted SG&A expenses increased 2.8% to $3.04 billion, while adjusted R&D expenses were $1.61 billion in the second quarter, up 1.5% year over year. The adjusted operating margin represented 51% of sales.
2022 Guidance
AbbVie confirmed its EPS guidance for 2022 to suggest the unfavorable impact of acquired IPR&D and milestone expenses incurred during the second quarter. ABBV expects adjusted EPS in the range of $13.78-$13.98. The Zacks Consensus Estimate for current-year earnings per share is pegged at $13.93.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.