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AbbVie (ABBV) Q4 Earnings & Sales Top, 2021 Outlook Bright
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AbbVie Inc. (ABBV - Free Report) reported earnings of $2.92 per share for the fourth quarter of 2020, comfortably beating the Zacks Consensus Estimate of $2.85 and exceeding the guided range of $2.83-$2.85. Earnings rose 32.1% year over year.
The company’s revenues of $13.90 billion beat the Zacks Consensus Estimate of $13.72 billion. The top line improved 59.2% year over year on a reported basis. However, on an operational basis, revenues increased only 6.8%.
Please note that AbbVie completed the acquisition of Allergan in May 2020. AbbVie represented sales numbers as reported as well as on “comparable operational” basis, which included prior-year sales of Allergan’s products, as the acquisition closed on Jan 1, 2019, at constant currency rates.
AbbVie’s shares were up 1.6% in pre-market trading. AbbVie’s shares have gained 22.6% in the past year against the industry’s 3.1% decrease.
Quarter in Detail
Key drug Humira recorded sales increase of 4.4% on an operational basis year over year with revenues from the same coming in at $5.15 billion. Sales in the United States climbed 8.2% to $4.29 billion. However, Humira sales in the ex-U.S. markets were down 11.4% on an operational basis and 9.4% on a reported basis to $859 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 $525 million and $281 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $435 million and $215 million, 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 15.5% on an operational basis to $1.79 billion in the quarter, driven by strong growth of both Imbruvica and Venclexta.
Fourth-quarter net revenues from Imbruvica were $1.42 billion, up 9.8% year over year. U.S. sales of Imbruvica grossed $1.17 billion, up 8.6% from the year-ago figure. AbbVie’s share of profit from International sales of the drug rose 15.7% to $259 million. Notably, AbbVie shares international profits earned from Imbruvica with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta generated revenues of $365 million in the reported quarter, reflecting growth of 45% year over year on an operational basis. AbbVie has a partnership with Roche (RHHBY - Free Report) for Venclexta.
Other products that delivered an encouraging performance include Creon and Duodopa, which recorded revenue growth of 4% and 4.6%, respectively, on an operational basis. Lupron and Synthroid witnessed a revenue decrease of 16.9% and 5.1%, respectively. Orilissa sales were up 10.7% year over year. Sales of Mavyret were $481 million, down 24.9% operationally.
AbbVie added several drugs to its portfolio with the acquisition of Allergan. Key drugs among them include multi-indication drug, Botox, and Vraylar. Botox is sold as a cosmetic as well as therapeutic. Botox Cosmetic net revenues were $493 million, up 9.1% on an operational basis. Botox Therapeutic net revenues decreased 1% year over year to $567 million. However, Vraylar sales were up 38% to $401 million. Sales of Restasis, an eye drug added with Allergan acquisition, were down 1% operationally to $344 million.
Adjusted SG&A expenses increased 64% to $3.09 billion while R&D expenses were $1.75 billion in the fourth quarter, rising 31.6% year over year. Adjusted operating margin represented 46.9% of sales.
Full-Year Results
AbbVie reported revenues of $45.8 billion, up 37.7% year over year. The company’s adjusted earnings for 2020 were $10.56 per share, up 18.1% from the year-ago period.
The company also provided long-term sales outlook. It expects sales growth to remain strong till Humira losses patent exclusivity in 2023. AbbVie expects sales to decline in 2023 but modest top-line growth in 2024. It expects strong sales growth to return in 2025, followed by a high-single digit compound annual growth rate till 2030.
2021 Guidance
AbbVie issued EPS guidance for 2021. The company expects adjusted EPS to be in the range of $12.32-$12.52, suggesting year-over-year growth of 16.7%-18.6%. The strong earnings expectations reflect robust demand for AbbVie’s products amid the COVID-19 pandemic. The Zacks Consensus Estimate for current-year earnings per share is pegged at $12.17.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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AbbVie (ABBV) Q4 Earnings & Sales Top, 2021 Outlook Bright
AbbVie Inc. (ABBV - Free Report) reported earnings of $2.92 per share for the fourth quarter of 2020, comfortably beating the Zacks Consensus Estimate of $2.85 and exceeding the guided range of $2.83-$2.85. Earnings rose 32.1% year over year.
The company’s revenues of $13.90 billion beat the Zacks Consensus Estimate of $13.72 billion. The top line improved 59.2% year over year on a reported basis. However, on an operational basis, revenues increased only 6.8%.
Please note that AbbVie completed the acquisition of Allergan in May 2020. AbbVie represented sales numbers as reported as well as on “comparable operational” basis, which included prior-year sales of Allergan’s products, as the acquisition closed on Jan 1, 2019, at constant currency rates.
AbbVie’s shares were up 1.6% in pre-market trading. AbbVie’s shares have gained 22.6% in the past year against the industry’s 3.1% decrease.
Quarter in Detail
Key drug Humira recorded sales increase of 4.4% on an operational basis year over year with revenues from the same coming in at $5.15 billion. Sales in the United States climbed 8.2% to $4.29 billion. However, Humira sales in the ex-U.S. markets were down 11.4% on an operational basis and 9.4% on a reported basis to $859 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 $525 million and $281 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $435 million and $215 million, 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 15.5% on an operational basis to $1.79 billion in the quarter, driven by strong growth of both Imbruvica and Venclexta.
Fourth-quarter net revenues from Imbruvica were $1.42 billion, up 9.8% year over year. U.S. sales of Imbruvica grossed $1.17 billion, up 8.6% from the year-ago figure. AbbVie’s share of profit from International sales of the drug rose 15.7% to $259 million. Notably, AbbVie shares international profits earned from Imbruvica with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta generated revenues of $365 million in the reported quarter, reflecting growth of 45% year over year on an operational basis. AbbVie has a partnership with Roche (RHHBY - Free Report) for Venclexta.
Other products that delivered an encouraging performance include Creon and Duodopa, which recorded revenue growth of 4% and 4.6%, respectively, on an operational basis. Lupron and Synthroid witnessed a revenue decrease of 16.9% and 5.1%, respectively. Orilissa sales were up 10.7% year over year. Sales of Mavyret were $481 million, down 24.9% operationally.
AbbVie added several drugs to its portfolio with the acquisition of Allergan. Key drugs among them include multi-indication drug, Botox, and Vraylar. Botox is sold as a cosmetic as well as therapeutic. Botox Cosmetic net revenues were $493 million, up 9.1% on an operational basis. Botox Therapeutic net revenues decreased 1% year over year to $567 million. However, Vraylar sales were up 38% to $401 million. Sales of Restasis, an eye drug added with Allergan acquisition, were down 1% operationally to $344 million.
Adjusted SG&A expenses increased 64% to $3.09 billion while R&D expenses were $1.75 billion in the fourth quarter, rising 31.6% year over year. Adjusted operating margin represented 46.9% of sales.
Full-Year Results
AbbVie reported revenues of $45.8 billion, up 37.7% year over year. The company’s adjusted earnings for 2020 were $10.56 per share, up 18.1% from the year-ago period.
The company also provided long-term sales outlook. It expects sales growth to remain strong till Humira losses patent exclusivity in 2023. AbbVie expects sales to decline in 2023 but modest top-line growth in 2024. It expects strong sales growth to return in 2025, followed by a high-single digit compound annual growth rate till 2030.
2021 Guidance
AbbVie issued EPS guidance for 2021. The company expects adjusted EPS to be in the range of $12.32-$12.52, suggesting year-over-year growth of 16.7%-18.6%. The strong earnings expectations reflect robust demand for AbbVie’s products amid the COVID-19 pandemic. The Zacks Consensus Estimate for current-year earnings per share is pegged at $12.17.
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.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>