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AbbVie Inc. (ABBV - Free Report) reported earnings of $3.33 per share for the third quarter of 2021, beating the Zacks Consensus Estimate of $3.23 and exceeding the guided range of $3.18 to $3.22 per share. Earnings rose 17.7% year over year.
The company’s revenues of $14.34 billion slightly missed the Zacks Consensus Estimate of $14.41 billion. Sales rose 11.3% year over year on a reported basis and 10.8% on an operational basis. Strong demand for immunology drugs, aesthetics and cosmetics drives sales.
Shares of AbbVie were up 2.7% in pre-market trading on the earnings beat and improved earnings guidance for 2021. AbbVie’s shares have gained 2.4% so far this year compared with the industry’s 13.2% increase.
Image Source: Zacks Investment Research
Quarter in Detail
In immunology, key drug Humira recorded a year-over-year sales increase of 5.2% on an operational basis to $5.43 billion. Sales in the United States climbed 10.1% to $4.61 billion. However, Humira sales in the ex-U.S. markets were down 16.7% on an operational basis to $812 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 $796 million and $453 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $674 million and $378, respectively. Strong sequential growth in sales can be attributed to strong uptake.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 8.1% on an operational basis to $1.87 billion in the quarter, driven by the strong growth of both Imbruvica and Venclexta.
Third-quarter net revenues from Imbruvica were $1.37 billion, up 0.3% year over year. U.S. sales of Imbruvica grossed $1.11 billion, down 0.9% from the year-ago figure. AbbVie’s share of profit from International sales of the drug rose 5.7% to $265 million. Notably, AbbVie shares international profits earned from Imbruvica with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta generated revenues of $492 million in the reported quarter, reflecting 38.7% year-over-year growth on an operational basis. AbbVie has a partnership with Roche (RHHBY - Free Report) for Venclexta.
AbbVie’s aesthetics portfolio sales were up 29.3% and 27.7% on a reported and operational basis, respectively, to $1.25 billion on the back of robust demand for Botox Cosmetic and Juvederm. Sales of Botox cosmetic rose 36.9% on an operational basis to $545 million while Juvederm’s sales were up 26.6% operationally to $354 million.
Sales from the neuroscience portfolio increased 25% operationally to $1.57 billion, driven by Botox Therapeutic and Vraylar. While Botox Therapeutic sales rose 22.5% to $645 million, sales of Vraylar were up 29% to $461 million. AbbVie’s newly launched oral migraine drug, Ubrelvy, generated $162 million in revenues, compared with $126 million in the second quarter of 2021.
Eye care portfolio sales gained 2.9% on an operational basis to $871 million. Sales of a key drug in the portfolio, Restasis, increased 6.7% year over year to $319 million.
Other products that delivered an encouraging performance include Creon and Lupron, which recorded revenue growth of 10% and 34.5%, respectively, on an operational basis. Sales of Mavyret increased 2.9% operationally. Sales of Linzess gained 4.8%. However, sales of the Women's Health portfolio decreased 15.8%, operationally.
Adjusted SG&A expenses increased 8.7% to $2.96 billion while adjusted R&D expenses were $1.63 billion in the third quarter, rising 7.9% year over year. Adjusted operating margin represented 51.1% 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 $12.63-$12.67 compared with the previously issued guidance of $12.52-$12.62.
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AbbVie's (ABBV) Q3 Earnings Beat, 2021 EPS Guidance Raised
AbbVie Inc. (ABBV - Free Report) reported earnings of $3.33 per share for the third quarter of 2021, beating the Zacks Consensus Estimate of $3.23 and exceeding the guided range of $3.18 to $3.22 per share. Earnings rose 17.7% year over year.
The company’s revenues of $14.34 billion slightly missed the Zacks Consensus Estimate of $14.41 billion. Sales rose 11.3% year over year on a reported basis and 10.8% on an operational basis. Strong demand for immunology drugs, aesthetics and cosmetics drives sales.
Shares of AbbVie were up 2.7% in pre-market trading on the earnings beat and improved earnings guidance for 2021. AbbVie’s shares have gained 2.4% so far this year compared with the industry’s 13.2% increase.
Quarter in Detail
In immunology, key drug Humira recorded a year-over-year sales increase of 5.2% on an operational basis to $5.43 billion. Sales in the United States climbed 10.1% to $4.61 billion. However, Humira sales in the ex-U.S. markets were down 16.7% on an operational basis to $812 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 $796 million and $453 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $674 million and $378, respectively. Strong sequential growth in sales can be attributed to strong uptake.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 8.1% on an operational basis to $1.87 billion in the quarter, driven by the strong growth of both Imbruvica and Venclexta.
Third-quarter net revenues from Imbruvica were $1.37 billion, up 0.3% year over year. U.S. sales of Imbruvica grossed $1.11 billion, down 0.9% from the year-ago figure. AbbVie’s share of profit from International sales of the drug rose 5.7% to $265 million. Notably, AbbVie shares international profits earned from Imbruvica with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta generated revenues of $492 million in the reported quarter, reflecting 38.7% year-over-year growth on an operational basis. AbbVie has a partnership with Roche (RHHBY - Free Report) for Venclexta.
AbbVie’s aesthetics portfolio sales were up 29.3% and 27.7% on a reported and operational basis, respectively, to $1.25 billion on the back of robust demand for Botox Cosmetic and Juvederm. Sales of Botox cosmetic rose 36.9% on an operational basis to $545 million while Juvederm’s sales were up 26.6% operationally to $354 million.
Sales from the neuroscience portfolio increased 25% operationally to $1.57 billion, driven by Botox Therapeutic and Vraylar. While Botox Therapeutic sales rose 22.5% to $645 million, sales of Vraylar were up 29% to $461 million. AbbVie’s newly launched oral migraine drug, Ubrelvy, generated $162 million in revenues, compared with $126 million in the second quarter of 2021.
Eye care portfolio sales gained 2.9% on an operational basis to $871 million. Sales of a key drug in the portfolio, Restasis, increased 6.7% year over year to $319 million.
Other products that delivered an encouraging performance include Creon and Lupron, which recorded revenue growth of 10% and 34.5%, respectively, on an operational basis. Sales of Mavyret increased 2.9% operationally. Sales of Linzess gained 4.8%. However, sales of the Women's Health portfolio decreased 15.8%, operationally.
Adjusted SG&A expenses increased 8.7% to $2.96 billion while adjusted R&D expenses were $1.63 billion in the third quarter, rising 7.9% year over year. Adjusted operating margin represented 51.1% 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 $12.63-$12.67 compared with the previously issued guidance of $12.52-$12.62.
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 #4 (Sell) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.