AbbVie Stock Nears Breakout After First-Quarter Beat And Raise
AbbVie (ABBV) delivered a better-than-expected first-quarter report on the back of its aesthetics business and raised its 2021 profit outlook. AbbVie stock inched higher Friday.
The strong beat was refreshing "on the heels of multiple disappointing first-quarter earnings results from large-cap biopharma companies," Mizuho Securities analyst Vamil Divan said in a report to clients.
Not only did sales and earnings beat, the company said it expects to launch five products this year.
"With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend," Divan said.
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He reiterated his buy rating and 126 price target on AbbVie stock. On the stock market today, AbbVie stock rose fractionally to 111.50. Shares are forming a flat base with a buy point at 113.51, according to MarketSmith.com.
AbbVie Stock: Earnings, Sales Beat
Overall, AbbVie earnings jumped 22% to $2.95 per share, minus some items. That easily beat the FactSet estimate for $2.81 a share. The company generated $13.01 billion in sales, surging 51% year over year and topping the $12.77 billion forecast.
The aesthetics business — which AbbVie bought with Allergan — generated north of $1.14 billion in sales. That included $477 million in sales of Botox as a cosmetic treatment. The same drug is used to treat several medical conditions. There, it brought in $532 million.
Piper Sandler analyst Christopher Raymond noted aesthetics sales beat forecasts by $167 million. The company's immunology franchise, which includes major blockbuster Humira, also topped expectations by $93 million.
Worldwide, Humira generated $4.87 billion in sales, inching 3.5% higher. In the U.S., the drug brought in $3.91 billion, up 6.9%. Global Humira sales topped expectations, though U.S. sales were light, Raymond said.
Still, "with the backdrop of other large caps highlighting Covid and pricing headwinds as drivers of weak first-quarter numbers, we think this print is likely to raise an eyebrow or two," he said. Raymond has an overweight rating and 120 price target on AbbVie stock.
For the year, AbbVie now expects adjusted income of $12.37-$12.57 per share. At the midpoint, that beat AbbVie stock analysts' call for $12.39 per share on $55.4 billion in sales.
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