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AbbVie's (ABBV) Q3 Earnings Beat Estimates, 2018 EPS View Up
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AbbVie Inc. (ABBV - Free Report) posted better-than-expected third-quarter 2018 earnings while its revenues missed estimates by a slight margin. Moreover, the company raised its expectations for 2018 bottom line. Shares rose almost 3.4% in pre-market.
Shares of AbbVie have declined 17.1% in a year’s time against the industry’s 5% rise.
The biopharmaceutical company reported earnings of $2.14 per share in the third quarter, beating the Zacks Consensus Estimate of $2.01. The figure surged 51.8% year over year. Earnings per share also exceeded the guided range of $2.00 and $2.02.
The company posted revenues of $8.24 billion in the quarter under review, missing the Zacks Consensus Estimate of $8.26 billion. However, the top line increased 17.8% year over year. Excluding a 0.7% favorable impact from foreign exchange rate fluctuations, operational revenues rose 18.5%. Revenues growth was higher than the projection of approximately 17% on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 9.8% on an operational basis with revenues from the same coming in at $5.1 billion. Sales in the United States increased 12.5% to $3.5 billion, better than expectations. Humira sales in the ex-U.S. markets were up 4.2% on an operational basis and 1.8% on reported basis to $1.58 billion, almost in-line with the projected figure of $1.6 billion.
Third-quarter net revenues from Imbruvica were $972 million, up 41.3% year over year. U.S. sales of Imbruvica grossed $812 million, up 41.5% from the year-ago figure and also higher than the guided figure of $725 million. AbbVie logged $160 million of international profit sharing with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta, brought in revenues of $96 million, up more than 100% year over year.
Other products that delivered an impressive performance include Duodopa. It recorded revenue growth of 13.3% on operational basis and 12.1% on reported basis. Another product, Creon witnessed an increase of 11.3% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) products recorded sales of $862 million, up more than 100% year over year, on the back of strong demand for Mavyret, which was launched in the second half of 2017. The company’s expectation for HCV sales was $850 million.
However, sales of two key drugs, Androgel and Sevoflurane, fell 8.3% and 10.4%, respectively, operationally, during the quarter.
Adjusted SG&A expenses increased 8.4% to $1.56 billion while R&D expenses escalated 6% to $1.27 billion in the third quarter. Adjusted operating margin was 47.2% of sales.
Other Updates
In October, a label expansion of cancer drug, Venclyxto (Venclexta), in combination with Roche’s (RHHBY - Free Report) Rituxan (rituximab) for the treatment of patients with chronic lymphocytic leukemia (“CLL”) in second or later-line setting was approved in Europe. Data from a phase III study showed that Venclexta in combination with Roche’s Gazyva had superior progression-free survival (“PFS”) in first-line CLL compared to standard of care. A label expansion application for the drug is under review in the United States for treating acute myeloid leukemia in first-line setting.
During the quarter, AbbVie entered into a license agreement with Sandoz, a generic arm of Novartis (NVS - Free Report) , which will grant non-exclusive license relating to Humira in the United States and other countries. The agreement restricts Sandoz from launching a biosimilar version of the drug till Sep 30, 2023 in the United States. The restriction on the launch of a biosimilar version in Europe expired on Oct 16, 2018.
2018 Outlook Raised
AbbVie raised its adjusted EPS guidance to the range of $7.90-$7.92 for 2018 from $7.76-$7.86 predicted earlier. The earnings guidance reflects a year-over-year surge of 41.3% at the mid-point. The Zacks Consensus Estimate for current-year earnings is pegged at $7.86 per share.
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AbbVie's (ABBV) Q3 Earnings Beat Estimates, 2018 EPS View Up
AbbVie Inc. (ABBV - Free Report) posted better-than-expected third-quarter 2018 earnings while its revenues missed estimates by a slight margin. Moreover, the company raised its expectations for 2018 bottom line. Shares rose almost 3.4% in pre-market.
Shares of AbbVie have declined 17.1% in a year’s time against the industry’s 5% rise.
The biopharmaceutical company reported earnings of $2.14 per share in the third quarter, beating the Zacks Consensus Estimate of $2.01. The figure surged 51.8% year over year. Earnings per share also exceeded the guided range of $2.00 and $2.02.
The company posted revenues of $8.24 billion in the quarter under review, missing the Zacks Consensus Estimate of $8.26 billion. However, the top line increased 17.8% year over year. Excluding a 0.7% favorable impact from foreign exchange rate fluctuations, operational revenues rose 18.5%. Revenues growth was higher than the projection of approximately 17% on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 9.8% on an operational basis with revenues from the same coming in at $5.1 billion. Sales in the United States increased 12.5% to $3.5 billion, better than expectations. Humira sales in the ex-U.S. markets were up 4.2% on an operational basis and 1.8% on reported basis to $1.58 billion, almost in-line with the projected figure of $1.6 billion.
Third-quarter net revenues from Imbruvica were $972 million, up 41.3% year over year. U.S. sales of Imbruvica grossed $812 million, up 41.5% from the year-ago figure and also higher than the guided figure of $725 million. AbbVie logged $160 million of international profit sharing with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta, brought in revenues of $96 million, up more than 100% year over year.
Other products that delivered an impressive performance include Duodopa. It recorded revenue growth of 13.3% on operational basis and 12.1% on reported basis. Another product, Creon witnessed an increase of 11.3% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) products recorded sales of $862 million, up more than 100% year over year, on the back of strong demand for Mavyret, which was launched in the second half of 2017. The company’s expectation for HCV sales was $850 million.
However, sales of two key drugs, Androgel and Sevoflurane, fell 8.3% and 10.4%, respectively, operationally, during the quarter.
Adjusted SG&A expenses increased 8.4% to $1.56 billion while R&D expenses escalated 6% to $1.27 billion in the third quarter. Adjusted operating margin was 47.2% of sales.
Other Updates
In October, a label expansion of cancer drug, Venclyxto (Venclexta), in combination with Roche’s (RHHBY - Free Report) Rituxan (rituximab) for the treatment of patients with chronic lymphocytic leukemia (“CLL”) in second or later-line setting was approved in Europe. Data from a phase III study showed that Venclexta in combination with Roche’s Gazyva had superior progression-free survival (“PFS”) in first-line CLL compared to standard of care. A label expansion application for the drug is under review in the United States for treating acute myeloid leukemia in first-line setting.
During the quarter, AbbVie entered into a license agreement with Sandoz, a generic arm of Novartis (NVS - Free Report) , which will grant non-exclusive license relating to Humira in the United States and other countries. The agreement restricts Sandoz from launching a biosimilar version of the drug till Sep 30, 2023 in the United States. The restriction on the launch of a biosimilar version in Europe expired on Oct 16, 2018.
2018 Outlook Raised
AbbVie raised its adjusted EPS guidance to the range of $7.90-$7.92 for 2018 from $7.76-$7.86 predicted earlier. The earnings guidance reflects a year-over-year surge of 41.3% at the mid-point. The Zacks Consensus Estimate for current-year earnings is pegged at $7.86 per share.
Price, Consensus and EPS Surprise
Price, Consensus and EPS Surprise | Quote
Zacks Rank
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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