AbbVie Stock dives despite 'firing on all cylinders' in the first quarter

AbVie (ABBV) is firing on all cylinders, an analyst said Friday after the pharma giant beat Wall Street's first-quarter expectations and raised its earnings outlook. But AbbVie shares plummeted.




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Humira remains AbbVie's biggest backer despite competition from biosimilars in the U.S. and abroad. Humira treats immunological conditions such as arthritis and psoriasis. During the March quarter, Humira's revenue fell 35.9% to $2.27 billion. But analysts expected a steeper plunge to $2.2 billion to $2.24 billion, Piper Sandler analyst Christopher Raymond said in a report.

“This is despite the significant increase in US biosimilar market share in April,” Leerink Partners analyst David Risinger said in a client note.

In particular, the newer immunology drugs Skyrizi and Rinvoq are gaining traction quickly, and Skyrizi could soon overtake Humira as AbbVie's biggest drug. Skyrizi's revenue rose 47.6% to $2.01 billion, beating expectations for $1.93 billion. Rinvoq brought in $1.09 billion, up 59.3%, topping the call at $1.04 billion, Piper Sandler's Raymond said.

But in morning trading on today's stock market, AbbVie stock fell 3.1% to 162.08.

AbbVie Stock: Profit and revenue exceed expectations

In total, AbbVie achieved $12.31 billion in revenue and earned $2.31 per share, minus some items. Revenue increased 0.7% on a strict, as reported basis, and increased operationally 1.6%.

Earnings per share fell 6.1%, but beat expectations by a nickel, according to FactSet. Earnings fell 8 cents due to tax charges and milestone costs, AbbVie said in a news release.

Revenue from AbbVie's cancer treatments also exceeded expectations by a combined $163 million, William Blair analyst Tim Lugo said in a report. That division generated revenue of $1.54 billion, an increase of 9%.

But sales of aesthetic products lagged, Piper Sandler's Raymond said. Botox as a cosmetic treatment generated sales of $633 million, missing forecasts of $689 million. Raymond called for an even stronger $710 million. Sales of the skin-tightening drug Juvederm lagged at $297 million.

Neuroscience revenue was mixed. Botox as a therapeutic treatment for migraines, excessive sweating and other conditions totaled $748 million. Analysts broadly forecast revenue of $765 million, according to Raymond. His estimate was a more conservative $710 million. But it beat out migraine drugs Ubrelvy and Qulipta with sales of $203 million and $131 million, respectively.

For this year, AbbVie raised its earnings outlook from $11.13 to $11.33 per share. AbbVie stock analysts forecast earnings per share of $11.12 and revenue of $54.52 billion.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

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