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AbbVie (ABBV) to Report Q2 Earnings: What's in the Cards?
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AbbVie (ABBV - Free Report) will report second-quarter 2023 results on Jul 27, before market open. In the last reported quarter, the company delivered an earnings surprise of 0.82%.
Factors to Consider
AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. The upside can be attributed to label expansions of both drugs to allow use in new patient populations in the last few quarters. This trend is expected to have continued in the to-be-reported quarter.
During the second quarter, Rinvoq received label expansion approvals in Crohn’s disease indication in both the United States and European Union. The Zacks Consensus Estimate and our model estimates for Rinvoq are pegged at $896 million and $878 million, respectively.
The Zacks Consensus Estimate and our model estimates for Skyrizi are pegged at $1.77 billion and $1.76 billion, respectively.
Growth in Rinvoq and Skyrizi sales is expected to partially make up for the fall in sales of the flagship drug Humira’. The drug recently lost exclusivity in the United States following the launch of Amgen’s Amjevita in first-quarter 2023, the first U.S. biosimilar to Humira. Many other companies, like Boehringer Ingelheim, Samsung Bioepis and Novartis (through its Sandoz generic arm), have also launched their own Humira biosimilars this month. More such biosimilars are expected to be launched throughout this year. The impact of these biosimilars on Humira sales will be seen in subsequent quarters. The drug has already lost the exclusivity in ex-U.S. territories following the launch of generics in 2018.
The Zacks Consensus Estimate and our model estimate for Humira are pegged at $3.93 billion and $3.95 billion, respectively.
In the hematologic oncology segment, AbbVie markets two drugs, namely Imbruvica and Venclexta, in partnership with Johnson & Johnson (JNJ - Free Report) and Roche (RHHBY - Free Report) , respectively
We expect JNJ-partnered Imbruvica sales to decline due to novel oral therapies hurting the drug’s sales. During the onset of the second quarter, AbbVie and J&J voluntarily withdrew the accelerated approvals granted by the FDA to Imbruvica in two indications — mantle cell lymphoma and marginal zone lymphoma — since data from confirmatory studies did not support conversion to full approval. This is likely to have led to a fall in sales during the quarter. For the J&J-partnered drug, the Zacks Consensus Estimate and our model estimates are pegged at $875 million and $884 million, respectively.
Sales of Roche-partnered Venclexta sales are likely to rise as new patient starts are expected to improve. The Zacks Consensus Estimate and our model estimates for the Roche-partnered drug stand at $556 million.
In the aesthetics franchise, we expect overall sales to fall as economic pressure is impacting consumers’ discretionary spending. ABBV’s suspension of its aesthetics business operations in Russia also affected the company’s sales, as Russia is a key market for fillers. The Zacks Consensus Estimate and our model estimate for aesthetics product sales is pegged at $1.33 billion and $1.32 billion, respectively.
Sales of the neuroscience franchise have shown strong growth in recent quarters, with sales likely to be driven by the recently-approved migraine drugs — Ubrelvy and Qulipta. The Zacks Consensus Estimate and our model estimate suggest neuroscience product sales at $1.82 billion and $1.78 billion, respectively.
Investor are likely to forward questions regarding updates on new product launches.
Key Development in Q2
In May 2023, the FDA granted approval to Epkinly (epcoritamab) for treatment of adults with relapsed or refractory diffuse large B-cell lymphoma (DLBCL). The drug will be marketed in the country in partnership with Genmab.
A regulatory filing for the drug in a similar indication is currently under review in the European Union. If approved, the drug will be marketed under the brand name Tepkinly.
Earnings Surprise History
AbbVie’s performance has been impressive, with its earnings beating estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 1.78%, on average.
Shares of AbbVie have lost 12.0% so far this year against the industry’s 2.5% growth.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: AbbVie has an Earnings ESP of -1.26% as the Most Accurate Estimate of $2.78 per share is lower than the Zacks Consensus Estimate of $2.82.
Here is a large drug stock that has the right combination of elements to beat on earnings this time around:
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3.
AstraZeneca’s stock has risen 1.1% this year so far. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.11%, on average. AstraZeneca is scheduled to release its second-quarter results on Jul 28.
Image: Shutterstock
AbbVie (ABBV) to Report Q2 Earnings: What's in the Cards?
AbbVie (ABBV - Free Report) will report second-quarter 2023 results on Jul 27, before market open. In the last reported quarter, the company delivered an earnings surprise of 0.82%.
Factors to Consider
AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. The upside can be attributed to label expansions of both drugs to allow use in new patient populations in the last few quarters. This trend is expected to have continued in the to-be-reported quarter.
During the second quarter, Rinvoq received label expansion approvals in Crohn’s disease indication in both the United States and European Union. The Zacks Consensus Estimate and our model estimates for Rinvoq are pegged at $896 million and $878 million, respectively.
The Zacks Consensus Estimate and our model estimates for Skyrizi are pegged at $1.77 billion and $1.76 billion, respectively.
Growth in Rinvoq and Skyrizi sales is expected to partially make up for the fall in sales of the flagship drug Humira’. The drug recently lost exclusivity in the United States following the launch of Amgen’s Amjevita in first-quarter 2023, the first U.S. biosimilar to Humira. Many other companies, like Boehringer Ingelheim, Samsung Bioepis and Novartis (through its Sandoz generic arm), have also launched their own Humira biosimilars this month. More such biosimilars are expected to be launched throughout this year. The impact of these biosimilars on Humira sales will be seen in subsequent quarters. The drug has already lost the exclusivity in ex-U.S. territories following the launch of generics in 2018.
The Zacks Consensus Estimate and our model estimate for Humira are pegged at $3.93 billion and $3.95 billion, respectively.
In the hematologic oncology segment, AbbVie markets two drugs, namely Imbruvica and Venclexta, in partnership with Johnson & Johnson (JNJ - Free Report) and Roche (RHHBY - Free Report) , respectively
We expect JNJ-partnered Imbruvica sales to decline due to novel oral therapies hurting the drug’s sales. During the onset of the second quarter, AbbVie and J&J voluntarily withdrew the accelerated approvals granted by the FDA to Imbruvica in two indications — mantle cell lymphoma and marginal zone lymphoma — since data from confirmatory studies did not support conversion to full approval. This is likely to have led to a fall in sales during the quarter. For the J&J-partnered drug, the Zacks Consensus Estimate and our model estimates are pegged at $875 million and $884 million, respectively.
Sales of Roche-partnered Venclexta sales are likely to rise as new patient starts are expected to improve. The Zacks Consensus Estimate and our model estimates for the Roche-partnered drug stand at $556 million.
In the aesthetics franchise, we expect overall sales to fall as economic pressure is impacting consumers’ discretionary spending. ABBV’s suspension of its aesthetics business operations in Russia also affected the company’s sales, as Russia is a key market for fillers. The Zacks Consensus Estimate and our model estimate for aesthetics product sales is pegged at $1.33 billion and $1.32 billion, respectively.
Sales of the neuroscience franchise have shown strong growth in recent quarters, with sales likely to be driven by the recently-approved migraine drugs — Ubrelvy and Qulipta. The Zacks Consensus Estimate and our model estimate suggest neuroscience product sales at $1.82 billion and $1.78 billion, respectively.
Investor are likely to forward questions regarding updates on new product launches.
Key Development in Q2
In May 2023, the FDA granted approval to Epkinly (epcoritamab) for treatment of adults with relapsed or refractory diffuse large B-cell lymphoma (DLBCL). The drug will be marketed in the country in partnership with Genmab.
A regulatory filing for the drug in a similar indication is currently under review in the European Union. If approved, the drug will be marketed under the brand name Tepkinly.
Earnings Surprise History
AbbVie’s performance has been impressive, with its earnings beating estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 1.78%, on average.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Shares of AbbVie have lost 12.0% so far this year against the industry’s 2.5% growth.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: AbbVie has an Earnings ESP of -1.26% as the Most Accurate Estimate of $2.78 per share is lower than the Zacks Consensus Estimate of $2.82.
Zacks Rank: AbbVie currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock to Consider
Here is a large drug stock that has the right combination of elements to beat on earnings this time around:
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3.
AstraZeneca’s stock has risen 1.1% this year so far. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.11%, on average. AstraZeneca is scheduled to release its second-quarter results on Jul 28.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.