What to expect from AbbVie Q2 earnings

AbbVie (NYSE: ABBV) is scheduled to report its earnings results for the second quarter of 2019 on Friday before the market opens. The late-stage pipeline assets and commercial execution of new product launches could be a driving factor of the revenue growth with diversifying revenue streams. The purchase of Allergan and Mavupharma could remain as the focus at the management’s conference call.

The results will be benefited by its continued investment and expansion in its pipeline in support of opportunities in immunology, oncology and neuroscience. This along with additional targeted investment in cystic fibrosis and women’s health as well as continued investment in key on-market products could be beneficial for the company.

The markets for AbbVie’s products are highly competitive. AbbVie’s Humira competes with anti-TNF products and other competitive products intended to treat a number of disease states and AbbVie’s virology products compete with other available hepatitis C virus (HCV) treatment options.

Also, the substitution of generic pharmaceutical products for branded pharmaceutical products creates competitive pressures on AbbVie’s products that do not have patent protection. New products or treatments brought to market by its competitors could cause revenues for AbbVie’s products to fall due to price reductions and sales volume decreases.

In the recent months, AbbVie has made a couple of acquisitions. In June, AbbVie agreed to buy Botox-producer Allergan Plc for $63 billion. In July, the company agreed to buy Mavupharma for bolstering its cancer drug pipeline.

Also read: Abbott Q2 earnings results

Analysts expect the company’s earnings to increase by 10% to $2.20 per share while revenue will decline by 2% to $8.1 billion for the second quarter. In comparison, during the previous year quarter, AbbVie posted a profit of $2.00 per share on revenue of $8.26 billion. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters.

For the first quarter, the company reported a 12% decline in earnings due to lower revenue, higher interest expense, and other expenses. Revenue declined by 1% year-over-year due to a 6% decrease in global Humira revenue and a 43% dip in revenue from the hematologic oncology portfolio. For the full year 2019, the company expects earnings in the range of $7.26 to $7.36 per share and adjusted earnings in the range of $8.73 to $8.83 per share.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions