Categories: Economic News

AbbVie shares cut on mixed earnings report, 2022 earnings view cut

AbbVie shares slipped on Friday after “temporary economic headwinds” slowed its cosmetic drugs, including Botox, in the third quarter.


Generally, AbbVieThe medical aesthetics division (ABBV) generated $1.3 billion in sales. On a strictly reported basis, sales were up 4%. The largest segment in the US saw sales fall more than 7%. Offsetting this, international revenue was up nearly 26%.

Chief executive Richard Gonzalez noted that the immunology drugs Skyrizi and Rinvoq helped mitigate the poor cosmetic performance. The duo will be important going forward when AbbVie’s biggest drug, an immunology treatment called Humira, loses patent protection.

“We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance, combined with the strength of other growth drivers within our diverse portfolio, has mitigated the impact of temporary economic headwinds in our beauty products to deliver another quarter of strong results,” he said in a report.

But in trading today, AbbVie shares fell 3.8% to 147.61.

AbbVie Stock: A Mixed Third Quarter

The third quarter was generally a mixed bag for AbbVie. Adjusted earnings beat views at $3.66 per share, but total sales came in at $14.81 million. Sales were up about 3% and revenue was up more than 29%.

But Humira revenue missed expectations of $5.56 billion. While sales rose 2.5 percent, they fell short of expectations of $5.59 billion, Piper Sandler analyst Christopher Raymond said in a note. Meanwhile, Skyrizi beat forecasts by nearly $1.4 billion, but lost $695 million in Rinvoq sales.

In the aesthetics division, Botox sales rose nearly 17% to $637 million, while Juvederm revenue sank nearly 1% to $352 million. Botox sales fell short of the $641 million forecast, but Juvederm was in line, Raymond said.

The two cancer drugs, Imbruvica and Venclexta, lagged behind by $1.14 billion and $515 million respectively. Imbruvica sales fell more than 17%, although Venclexta gained single digits. Meanwhile, the neuroscience franchise failed “badly,” Raymond said. He noted the shortcomings of the Parkinson’s drug Duodopa and the migraine treatment Ubrelvy. Therapeutic botox sales matched forecasts at $699 million.

For the year, AbbVie cut its earnings outlook to $13.84-$13.88 per share, but kept the midpoint the same. The company did not provide sales guidance. AbbVie equities analysts forecast adjusted earnings of $13.85 per share on sales of $58.92 million.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


Merck surges into buy zone as two key products drive its bullish report

Why Pandemic Darlings Teladoc, Align Diverged in Their Third Quarter Reports

Options Trading: How to start using options, how to manage risk

Follow the pre-market and post-open action with IBD experts

Stocks to buy and watch: Top IPOs, large and small caps, growth stocks


Published by

Recent Posts

More on the Interest-Income Channel

Last weekend, I wrote about Warren Mosler's argument that the Fed's rate hikes could be…

1 month ago

More information in the Interests Channel

Last weekend, I he wrote on Warren Mosler's argument that the Fed's rate hikes could…

1 month ago

Biden wants to reduce the deficit. Powell wants to reduce inflation. Do rate hikes undermine both goals?

Last week, the chairman of the Fed, Jerome Powell said, "the disinflationary process has begun".…

1 month ago

Quick thoughts on the CBO budget and economic outlook

Earlier this week, I joined Romaine Bostick and Scarlet Fu Bloomberg TV. The Congressional Budget…

1 month ago

Eight states have joined forces to raise taxes on America’s wealthiest

Tomorrow morning, I'll be joining CNBC's Squawk Box to talk about a new effort tax…

2 months ago

Mike Pence would pick up where Paul Ryan left off

Former Vice President Mike Pence talks about privatizing Social Security. The remarks came Thursday before…

2 months ago