AbbVie’s Q4 results beat expectations

AbbVie (NYSE: ABBV) topped revenue and earnings expectations for the fourth quarter of 2019, allowing the stock to gain over 3% in premarket hours on Friday.

Net revenues of $8.70 billion was up 4.8% compared to the same period a year ago and ahead of consensus estimates of $8.69 billion. On an operational basis, revenues grew 5.3%.

HUMIRA revenues in international markets were negatively impacted by biosimilar competition during the quarter and absent this impact, net revenues rose 11% operationally.

On a GAAP basis, the company reported net earnings of $2.8 billion, or $1.88 per share, compared to a net loss of $1.8 billion, or $1.23 per share, last year. Adjusted EPS totaled $2.21, beating forecasts of $2.19.   

Global HUMIRA revenues remained unchanged from the prior-year period. HUMIRA revenues increased 9.8% in the US but declined 27.3% internationally due to biosimilar competition. IMBRUVICA revenues improved almost 29% while revenues from the hematologic oncology portfolio grew 37%.

Also read: AbbVie Q4 2019 Earnings Preview

For the full year of 2020, the company expects GAAP EPS to be $7.66-7.76, representing growth of 46% at the midpoint. Adjusted EPS is estimated to be $9.61-9.71, reflecting growth of 8.1% at the midpoint. Revenue is expected to grow at least 8% operationally.  

AbbVie and Allergan have agreed to divest brazikumab and Zenpep as part of the regulatory approval process related to their proposed acquisition agreement. Brazikumab will be acquired by AstraZeneca while Nestle will take over Zenpep. The divestitures are subject to various approvals and closing conditions. Abbvie expects to complete the acquisition of Allergan in the first quarter of 2020.

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