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AbbVie (ABBV) Misses on Q4 Earnings & Revenues, Shares Down
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AbbVie Inc. (ABBV - Free Report) posted lower-than-expected fourth-quarter 2018 earnings and revenues. Moreover, Humira sales growth slowed as biosimilar launch in Europe pulled down sales of the drug. Shares fell almost 5% in pre-market trading.
Shares of AbbVie have declined 30.3% in a year’s time against the industry’s 6.8% rise.
The biopharmaceutical company reported earnings of $1.90 per share in the fourth quarter, missing the Zacks Consensus Estimate of $1.92. However, the figure surged 28.4% year over year. Earnings per share were within the guided range of $1.89 and $1.91.
The company posted revenues of $8.31 billion in the quarter under review, missing the Zacks Consensus Estimate of $8.36 billion. However, the top line increased 7.3% year over year. Excluding a 1% unfavorable impact from foreign exchange rate fluctuations, operational revenues rose 8.3%. Revenue growth was higher than the projection of approximately 7% on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 1.4% on an operational basis with revenues from the same coming in at $4.9 billion. The Zacks Consensus Estimate for Humira sales was $5 billion. Sales in the United States increased 9.1% to $3.6 billion. Humira sales in ex-U.S. markets were down 14.8% on an operational basis and 17.5% on a reported basis to $1.3 billion. International sales were severely impacted by the launch of several direct biosimilar drugs in Europe by other pharma companies including Amgen (AMGN - Free Report) , Sandoz and Biogen.
Fourth-quarter net revenues from Imbruvica were $1 billion, up 42% year over year. U.S. sales of Imbruvica grossed $839 million, up 43.2% from the year-ago figure. AbbVie logged $167 million of international profit sharing with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta, brought in revenues of $124 million, up more than 100% year over year.
Other products that delivered an impressive performance include Duodopa. It recorded revenue growth of 16.7% on operational basis and 14% on reported basis. Another product, Creon witnessed an increase of 11.4% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) products recorded sales of $862 million, up 71.4% operationally year over year, on the back of strong demand for Mavyret, which was launched in the second half of 2017. Mavyret sales more than doubled to $819 million.
Other drugs that recorded sales decline include Androgel, Kaletra and Sevoflurane, which fell 45.8%, 23.1% and 10.6%, respectively, operationally, during the quarter.
Adjusted SG&A expenses increased 9.2% to $1.8 billion while R&D expenses rose 3.1% to $1.37 billion in the fourth quarter. Adjusted operating margin was 41.7% of sales.
Other Updates
In January, data from the phase III RESOLVE study showed that the Imbruvica combination failed to bring statistically-significant improvement in progression-free-survival (“PFS”) and overall survival in patients with metastatic pancreatic adenocarcinoma. The study was evaluating Imbruvica in combination with chemotherapy agents nab-paclitaxel and gemcitabine.
In December, AbbVie stopped enrolling patients in the phase III study, TAHOE, evaluating Rova-T in second-line small cell lung cancer (“SCLC”) on recommendation from an Independent Data Monitoring Committee.
Last month, the company submitted regulatory applications in the United States and EU for seeking approval for upadacitinib for treating adults with moderate-to-severe rheumatoid arthritis.
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. A label expansion for the drug was approved in the United States for treating acute myeloid leukemia in first-line setting during the quarter.
During the quarter, the company’s board approved an increase of $5 billion in its present share repurchase program.
2019 Guidance
AbbVie expects adjusted EPS to be in the range of $8.65-$8.75 for 2019. The earnings guidance indicates a year-over-year increase of 10% at the mid-point. The Zacks Consensus Estimate for current-year earnings per share is pegged at $8.68.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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AbbVie (ABBV) Misses on Q4 Earnings & Revenues, Shares Down
AbbVie Inc. (ABBV - Free Report) posted lower-than-expected fourth-quarter 2018 earnings and revenues. Moreover, Humira sales growth slowed as biosimilar launch in Europe pulled down sales of the drug. Shares fell almost 5% in pre-market trading.
Shares of AbbVie have declined 30.3% in a year’s time against the industry’s 6.8% rise.
The biopharmaceutical company reported earnings of $1.90 per share in the fourth quarter, missing the Zacks Consensus Estimate of $1.92. However, the figure surged 28.4% year over year. Earnings per share were within the guided range of $1.89 and $1.91.
The company posted revenues of $8.31 billion in the quarter under review, missing the Zacks Consensus Estimate of $8.36 billion. However, the top line increased 7.3% year over year. Excluding a 1% unfavorable impact from foreign exchange rate fluctuations, operational revenues rose 8.3%. Revenue growth was higher than the projection of approximately 7% on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 1.4% on an operational basis with revenues from the same coming in at $4.9 billion. The Zacks Consensus Estimate for Humira sales was $5 billion. Sales in the United States increased 9.1% to $3.6 billion. Humira sales in ex-U.S. markets were down 14.8% on an operational basis and 17.5% on a reported basis to $1.3 billion. International sales were severely impacted by the launch of several direct biosimilar drugs in Europe by other pharma companies including Amgen (AMGN - Free Report) , Sandoz and Biogen.
Fourth-quarter net revenues from Imbruvica were $1 billion, up 42% year over year. U.S. sales of Imbruvica grossed $839 million, up 43.2% from the year-ago figure. AbbVie logged $167 million of international profit sharing with Johnson & Johnson (JNJ - Free Report) .
The company’s leukemia drug, Venclexta, brought in revenues of $124 million, up more than 100% year over year.
Other products that delivered an impressive performance include Duodopa. It recorded revenue growth of 16.7% on operational basis and 14% on reported basis. Another product, Creon witnessed an increase of 11.4% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) products recorded sales of $862 million, up 71.4% operationally year over year, on the back of strong demand for Mavyret, which was launched in the second half of 2017. Mavyret sales more than doubled to $819 million.
Other drugs that recorded sales decline include Androgel, Kaletra and Sevoflurane, which fell 45.8%, 23.1% and 10.6%, respectively, operationally, during the quarter.
Adjusted SG&A expenses increased 9.2% to $1.8 billion while R&D expenses rose 3.1% to $1.37 billion in the fourth quarter. Adjusted operating margin was 41.7% of sales.
Other Updates
In January, data from the phase III RESOLVE study showed that the Imbruvica combination failed to bring statistically-significant improvement in progression-free-survival (“PFS”) and overall survival in patients with metastatic pancreatic adenocarcinoma. The study was evaluating Imbruvica in combination with chemotherapy agents nab-paclitaxel and gemcitabine.
In December, AbbVie stopped enrolling patients in the phase III study, TAHOE, evaluating Rova-T in second-line small cell lung cancer (“SCLC”) on recommendation from an Independent Data Monitoring Committee.
Last month, the company submitted regulatory applications in the United States and EU for seeking approval for upadacitinib for treating adults with moderate-to-severe rheumatoid arthritis.
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. A label expansion for the drug was approved in the United States for treating acute myeloid leukemia in first-line setting during the quarter.
During the quarter, the company’s board approved an increase of $5 billion in its present share repurchase program.
2019 Guidance
AbbVie expects adjusted EPS to be in the range of $8.65-$8.75 for 2019. The earnings guidance indicates a year-over-year increase of 10% at the mid-point. The Zacks Consensus Estimate for current-year earnings per share is pegged at $8.68.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. 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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