AbbVie (NYSE: ABBV) produces consistently strong results despite narrow market
AbbVie (NYSE: ABBV) unveiled its third quarter earnings and once again proved to be a formidable money earner of the market. This doesn’t come off as a surprise because AbbVie (NYSE: ABBV) holds a reputation of being a top drug making company in the pharmacy market. The earnings were beyond the estimates of the analysts however. AbbVie’s (NYSE: ABBV) revenue surged to 5.019 billion dollars, marking a 7.8 percent year over year elevation.
The estimate marked by the analysts was 4.82 billion but AbbVie (NYSE: ABBV) proved to do a lot more than that. GAAP earnings were reported to be at 0.31 dollar per share whereas non-GAAP earnings stood at 0.89 dollars per share; analyst estimate was 0.77 per share. AbbVie (NYSE: ABBV) managed to earn a lot despite the fact that the company has been spending freely this year. The company’s spending were 16 percent more than last year’s 3.809 billion dollars.
The research and development department spending rose to $812 million from $714 million dollars. Similarly general costs, selling and administration costs shot up too. But the mounting spending couldn’t hold the progress of AbbVie (NYSE: ABBV). The primary reason for the boost AbbVie (NYSE: ABBV) has gained as far as revenue is concerned is because of the landmark drug it came up with: Humira. Because of this drug, revenue shot up by 17.5 percent as compared to the same quarter of the previous year.
Revenue generated from Humira dwindled a bit as compared to the revenue it generated in the previous quarter. But that is no point of concern for AbbVie (NYSE: ABBV), as it has accomplished what it wanted from the drug. Humira was released in order to overshadow the bad performance of AbbVie’s (NYSE: ABBV) lipid franchises. These franchises were on a constant bad run. Fortunately for AbbVie (NYSE: ABBV), Humira outweighed the loss with back to back strong quarters.
AbbVie’s (NYSE: ABBV) full year guidance estimate was 3.06 to 3.16 dollars per share but the company has managed to gain 3.25-3.27 dollars per share. The company’s shares climbed by 4 percent before the market closed on Friday. AbbVie (NYSE: ABBV) surely owes its nice run to Humira and other drugs which are faring well in the market. Word is that another blockbuster drug, catering to Hepatitis C, will be released by AbbVie (NYSE: ABBV) soon.
AbbVie (NYSE: ABBV)’s great run is news that’ll bring joy to the investors and shareholders. AbbVie (NYSE: ABBV) is one of those rare companies that is doing well in the market solely on the basis of the medicines it is making. Such companies depend upon the drugs they discover and patent. Even that doesn’t guarantee them financial return since the drug is tested for years. In such a scenario, AbbVie’s (NYSE: ABBV) great run at the stock market is good news not just for the people who’ve put their money in the company but the pharmaceutical market itself as well.