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AbbVie Inc. (ABBV - Free Report) reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. The reported earnings also exceeded the guidance of $3.55-$3.59. Earnings rose 29.3% year over year.
ABBV’s revenues of $14.81 billion missed the Zacks Consensus Estimate and our estimate of $14.92 billion and $14.98 billion, respectively. Sales rose 3.3% year over year on a reported basis and 5.4% on an operational basis. Sales were driven by immunology and neuroscience products, with key drugs like Rinvoq, Skyrizi and Venclexta contributing to the top line. This was partially offset by lower sales of Juvederm and Imbruvica.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales rise of 3.9% to $5.56 billion on an operational basis. Sales in the United States climbed 7.4% to $4.96 billion, which more than offset the 16.8% decline in ex-U.S. market sales of $603 million. The drug’s sales beat the Zacks Consensus Estimate for global Humira sales, which was pegged at $5.55 billion.
Humira’s 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. Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization in the United States is expected to start after the loss of exclusivity for Humira in the United States next year.
Net revenues recorded from Skyrizi sales in the third quarter were $1.40 billion, up 78.3% on an operational basis year over year. This significant rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales also beat the Zacks Consensus Estimate of $1.24 billion.
During the quarter, Rinvoq registered sales of $695 million, up 59.3% year over year on an operational basis. Ex-U.S. sales of the drug more than doubled year over year during the quarter. However, the drug’s sales missed the Zacks Consensus Estimate of $726 million.
Sales from the neuroscience portfolio increased 8.3% on an operational basis to $1.67 billion, driven by Botox Therapeutic and Vraylar and additional sales from the migraine drug Qulipta. Nonetheless, neuroscience sales figures missed the Zacks Consensus Estimate and our estimate of $1.82 billion and $1.79 billion, respectively.
While Botox Therapeutic sales rose 10% to $699 million, sales of Vraylar increased 20.2% to $554 million. Sales of AbbVie’s oral migraine drug Ubrelvy generated $160 million of revenues, down 1.2% on an operational basis year over year.
The recently launched Qulipta generated $62 million in product revenues compared to $33 million in second-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.9% on an operational basis to $1.65 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. The oncology/hematology sales missed both the Zacks Consensus and our estimates of $1.79 billion and $1.80 billion, respectively.
Third-quarter net revenues from Imbruvica were $1.14 billion, down 17.4% 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 $849 million, down 23.5% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug rose 7.6% to $286 million.
ABBV’s leukemia drug Venclexta generated revenues of $515 million in the reported quarter, reflecting 11.3% year-over-year growth on an operational basis.
AbbVie’s aesthetics portfolio sales were up 8.1% on an operational basis to $1.30 billion. The sales figure was lower than management’s expectations as U.S. sales of Juvederm and other aesthetic drugs offset growth in the sales of Botox Cosmetic. Sales of Botox Cosmetic rose 21.6% on an operational basis to $637 million, while Juvéderm’s sales grew 5.3% on an operational basis to $352 million.
Juvederm sales were hurt by the impact of COVID in China and the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers.
Eye care portfolio sales declined 25.2% on an operational basis to $623 million. Sales of Restasis, a key drug in the portfolio, decreased 55.9% year over year to $142 million.
Adjusted SG&A expenses increased 14.8% to $3.09 billion, while adjusted R&D expenses were $1.61 billion in the third quarter, down 1.5% year over year. The adjusted operating margin represented 53.4% of sales.
2022 EPS Guidance Narrowed
AbbVie narrowed down its EPS guidance for 2022 to include the unfavorable impact of acquired IPR&D and milestone expenses incurred during the third quarter. ABBV has confirmed the mid-point of its full-year 2022 adjusted EPS guidance range and narrowed down the same to $13.84-$13.88, from the previously provided guidance of $13.78-$13.98. The Zacks Consensus Estimate for current-year earnings per share is pegged at $13.89.
Shares of AbbVie were down 3.8% in pre-market trading on Oct 28 following the mixed earnings announcement and the lowered EPS guidance. AbbVie’s shares have gained 13.4% so far this year compared to the industry’s 1.8% rise.
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AbbVie (ABBV) Beats on Q3 Earnings, Lags Sales, Narrows '22 View
AbbVie Inc. (ABBV - Free Report) reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. The reported earnings also exceeded the guidance of $3.55-$3.59. Earnings rose 29.3% year over year.
ABBV’s revenues of $14.81 billion missed the Zacks Consensus Estimate and our estimate of $14.92 billion and $14.98 billion, respectively. Sales rose 3.3% year over year on a reported basis and 5.4% on an operational basis. Sales were driven by immunology and neuroscience products, with key drugs like Rinvoq, Skyrizi and Venclexta contributing to the top line. This was partially offset by lower sales of Juvederm and Imbruvica.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales rise of 3.9% to $5.56 billion on an operational basis. Sales in the United States climbed 7.4% to $4.96 billion, which more than offset the 16.8% decline in ex-U.S. market sales of $603 million. The drug’s sales beat the Zacks Consensus Estimate for global Humira sales, which was pegged at $5.55 billion.
Humira’s 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. Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization in the United States is expected to start after the loss of exclusivity for Humira in the United States next year.
Net revenues recorded from Skyrizi sales in the third quarter were $1.40 billion, up 78.3% on an operational basis year over year. This significant rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales also beat the Zacks Consensus Estimate of $1.24 billion.
During the quarter, Rinvoq registered sales of $695 million, up 59.3% year over year on an operational basis. Ex-U.S. sales of the drug more than doubled year over year during the quarter. However, the drug’s sales missed the Zacks Consensus Estimate of $726 million.
Sales from the neuroscience portfolio increased 8.3% on an operational basis to $1.67 billion, driven by Botox Therapeutic and Vraylar and additional sales from the migraine drug Qulipta. Nonetheless, neuroscience sales figures missed the Zacks Consensus Estimate and our estimate of $1.82 billion and $1.79 billion, respectively.
While Botox Therapeutic sales rose 10% to $699 million, sales of Vraylar increased 20.2% to $554 million. Sales of AbbVie’s oral migraine drug Ubrelvy generated $160 million of revenues, down 1.2% on an operational basis year over year.
The recently launched Qulipta generated $62 million in product revenues compared to $33 million in second-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.9% on an operational basis to $1.65 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. The oncology/hematology sales missed both the Zacks Consensus and our estimates of $1.79 billion and $1.80 billion, respectively.
Third-quarter net revenues from Imbruvica were $1.14 billion, down 17.4% 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 $849 million, down 23.5% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug rose 7.6% to $286 million.
ABBV’s leukemia drug Venclexta generated revenues of $515 million in the reported quarter, reflecting 11.3% year-over-year growth on an operational basis.
AbbVie’s aesthetics portfolio sales were up 8.1% on an operational basis to $1.30 billion. The sales figure was lower than management’s expectations as U.S. sales of Juvederm and other aesthetic drugs offset growth in the sales of Botox Cosmetic. Sales of Botox Cosmetic rose 21.6% on an operational basis to $637 million, while Juvéderm’s sales grew 5.3% on an operational basis to $352 million.
Juvederm sales were hurt by the impact of COVID in China and the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers.
Eye care portfolio sales declined 25.2% on an operational basis to $623 million. Sales of Restasis, a key drug in the portfolio, decreased 55.9% year over year to $142 million.
Adjusted SG&A expenses increased 14.8% to $3.09 billion, while adjusted R&D expenses were $1.61 billion in the third quarter, down 1.5% year over year. The adjusted operating margin represented 53.4% of sales.
2022 EPS Guidance Narrowed
AbbVie narrowed down its EPS guidance for 2022 to include the unfavorable impact of acquired IPR&D and milestone expenses incurred during the third quarter. ABBV has confirmed the mid-point of its full-year 2022 adjusted EPS guidance range and narrowed down the same to $13.84-$13.88, from the previously provided guidance of $13.78-$13.98. The Zacks Consensus Estimate for current-year earnings per share is pegged at $13.89.
Shares of AbbVie were down 3.8% in pre-market trading on Oct 28 following the mixed earnings announcement and the lowered EPS guidance. AbbVie’s shares have gained 13.4% so far this year compared to the industry’s 1.8% rise.
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AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
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AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.