AbbVie shares crumble on mixed earnings, cut 2022 earnings outlook

AbbVie shares slumped on Friday after the drugmaker cut its 2022 profit outlook after taking an unexpected hit during the first quarter.




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The company said it incurred a charge of 8 cents per share in the first quarter due to research and development costs and a milestone payment. Nevertheless, AbbVie (ABBV) earnings in the first quarter beat Wall Street expectations by two cents. Meanwhile, first quarter sales came to light.

Mizuho Securities analyst Vamil Divan noted that sales of several key drugs came to light. The list included the blockbuster immune-mediated drugs Humira and Rinvoq, as well as the cancer drug Imbruvica and a migraine treatment called Ubrelvy.

“While we’re fans of the AbbVie story, we expect today’s results to pressure AbbVie stock as people digest several major products that fall short of expectations ahead of Humira’s loss of exclusivity next year.” he said in a report to clients.

On stock market todayAbbVie shares fell 6% to 146.88.

AbbVie Stock: Earnings Miss Expectations

During the first quarter, AbbVie’s adjusted earnings rose more than 9% to $3.16 a share. That beat analyst forecasts by 2 cents.

However, sales fell far short of expectations, at $13.54 billion. On a strict as reported basis, sales increased 4.1%. Operationally, sales increased 5.4%.

First-quarter earnings were hit 8 cents due to an accounting change requested by the Securities and Exchange Commission. AbbVie passed that on to its guidance for 2022.

It now expects full-year earnings in the range of $13.92-$14.12 per share. That was below analyst opinion for AbbVie shares by $14.16. The company did not offer a sales outlook, although Street had expected $60.23 billion, an increase of 7%.

Humira Sales Lady, Mixed Botox

In particular, several of AbbVie’s key products underperformed in the first quarter. Its biggest product, Humira, trailed behind at $4.74 billion, down almost 3%.

The company is leaning on Skyrizi and Rinvoq to offset declining Humira sales in Europe as copycat drugs, known as biosimilars, take over its market. Humira is also expected to face biosimilars in the US next year. But the other immune drugs were divided when Skyrizi beat estimates and Rinvoq fell short. Both grew in double digits to $940 million and $465 million respectively.

Imbruvica sales were also mild at $1.17 billion, below analysts’ view of AbbVie shares of $1.22 billion, Piper Sandler analyst Christopher Raymond said in a report.

He also noted mixed sales of Botox. As a treatment, Botox sales fell short of $614 million, but as an aesthetic drug, Botox generated $641 million in sales and beat projections.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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