AbbVie Q2 Profit Rises, Results Beat View; Affirms 2014 Outlook

(RTTNews) - Research-based biopharmaceutical company AbbVie Inc. (ABBV) on Friday reported a 3 percent increase in profit for the second quarter from last year on higher revenues, reflecting strong sales of the company's blockbuster rheumatoid arthritis drug Humira.

Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company affirmed its recently-increased earnings outlook for fiscal 2014.

AbbVie was spun off from healthcare company Abbott Laboratories (ABT) in 2013. The company's products include former Abbott brands such as Humira, in addition to Lupron, Synagis, Kaletra, Creon and Synthroid.

Last week, AbbVie and Shire plc (SHP.L, SHPG), an Ireland-based manufacturer of drugs for rare diseases, said they have reached an agreement on the terms of a recommended combination of both companies. The deal values Shire at around 32 billion pounds or $54.7 billion.

Abbvie's net earnings for the second quarter rose to $1.10 billion or $0.68 per share from $1.07 billion or $0.66 per share in the previous-year quarter.

Excluding intangible asset amortization and other specified items, adjusted earnings for the latest quarter were $1.33 billion or $0.82 per share, compared to $1.32 billion or $0.82 per share in the year-ago period.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales for the quarter rose 5 percent to $4.93 billion from $4.69 billion in the year-ago period. Analysts' revenue consensus for the quarter was $4.70 billion.

On an operational basis, sales increased 4.8 percent, excluding a 0.2 percent favorable impact from foreign exchange rate fluctuations. Excluding sales from the company's lipid franchise due to the loss of exclusivity, sales rose 12.3 percent on an operational basis in the quarter.

Sales for the quarter were led by the continued strength of the company's blockbuster drug Humira. Global sales of Humira for the quarter increased 26 percent from the year-ago period to $3.29 billion, with U.S. Humira sales rising 36 percent.

Meanwhile, Lupron's global sales for the quarter declined 6 percent to $186 million, while Kaletra sales decreased 22 percent to $216 million.

Total operating cost and expenses for the quarter rose 5 percent to $3.41 billion from $3.24 billion in the prior-year period.

Looking ahead to the third quarter, AbbVie forecast earnings of $0.77 to $0.79 on an adjusted basis, or $0.68 to $0.70 on a reported basis. The outlook excludes the potential impact of the transaction with Shire.

Street expects the company to earn $0.77 per share for the quarter.

For fiscal 2014, AbbVie confirmed its recently-increased earnings outlook of $3.06 to $3.16 per share on an adjusted basis, or $2.69 to $2.79 on a reported basis.

The adjusted earnings guidance excludes $0.37 per share of intangible asset amortization expense and other specified items primarily associated with certain separation-related costs and ongoing restructuring activities.

AbbVie's 2014 outlook excludes any potential revenue from the expected 2014 U.S. launch of its hepatitis C or HCV therapy.

Analysts expect the company to earn $3.14 per share for the year on revenues of $19.40 billion.

ABBV closed Thursday's trading at $54.08. In Friday's pre-market trades, the stock is up $0.22 or 0.41 percent to $54.30.