AbbVie posted a nearly perfect third-quarter beat Friday, but AbbVie stock skidded on light aesthetics sales and as Humira sales continued to plummet.
During the September quarter, AbbVie earned an adjusted $2.95 per share on $13.93 billion in revenue.
Earnings came in better than expectations for $2.87 a share, but skidded 19.4% year over year. AbbVie noted a research and development charge had a negative 4-cent impact on earnings. Sales declined 6% on a strict, as-reported basis and 5.8% operationally, but topped calls for $13.72 billion.
On a bullish note, AbbVie raised its earnings outlook for this year and next.
On the stock market today, AbbVie stock tumbled 4.3%, closing at 138.93.
AbbVie Stock Takes A Hit On Aesthetics
Leerink Partners analyst David Risinger noted "third-quarter sales (were) strong across the board, except aesthetics, which fell short."
Sales of aesthetic treatments, which includes AbbVie's Botox, fell 4.7% on a reported basis to $1.24 billion. Analysts surveyed by FactSet expected a stronger $1.34 billion. Revenue from Botox as a cosmetic drug fell 2.7%, while Juvederm sales slipped 8.6%. Juvederm is a collection of skin fillers.
In comparison, sales of Botox as a therapeutic treatment climbed 7.1% to $748 million. Analysts called for $745 million to $750.1 million, according to Piper Sandler analyst Christopher Raymond and FactSet.
Meanwhile, Humira sales continued to dive following the launch of biosimilar rivals this year in the U.S. Worldwide sales of the immunology blockbuster tumbled 36.2% to $3.55 billion. But that topped views for $3.48 billion, Raymond said in a report.
"Humira is several quarters into the biosimilar event and we are continuing to effectively manage erosion and maintain strong parity access," AbbVie spokeswoman Gabrielle Tarbert said in an email to Investor's Business Daily. "We have been able to maintain significant volume, with the majority of impact to date driven by lower price."
Promisingly, sales of other immunology drugs, Skyrizi and Rinvoq, climbed a respective 52.1% and 59.8%. Skyrizi generated $2.13 billion in sales, while Rinvoq brought in $1.11 billion. AbbVie stock analysts called for almost $2.1 billion from Skyrizi and $1.03 billion from Rinvoq. Revenue from cancer drugs also beat expectations at $1.51 billion, though fell 8.4%.
AbbVie Raises Its 2023 And 2024 Outlook
AbbVie raised its guidance for the year. The company now expects to earn an adjusted $11.19 to $11.23 a share. AbbVie stock analysts forecast profit of $11.06 a share.
The pharma company also boosted the floor for its 2024 earnings to $11 per share, up from its previous $10.70 guidance.
Leerink's Risinger says this move "supports investor expectations." Currently, analysts project earnings next year to come in at $11.05 per share. Risinger estimates $11.07. He kept his market perform rating on AbbVie stock.
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