AbbVie topped third-quarter estimates and announced a 10.3% increase to its dividend in 2020.
During the third quarter, AbbVie earned $2.33 per share, minus certain items. AbbVie earnings increased roughly 9% year over year and beat the forecast of analysts polled by Zacks Investment Research for $2.29 per share. Sales grew 3% to $8.48 billion, above estimates for $8.41 billion.
Chief Executive Richard Gonzalez credited the third-quarter strength to AbbVie's immunology unit and blood cancer treatments.
"We are also making excellent progress with several key strategic priorities, including the recent launch of our two new immunology therapies — Rinvoq and Skyrizi — both of which are off to an impressive start, as well as continued progress toward the completion of our planned acquisition of Allergan (AGN)," he said in a written statement.
AbbVie Earnings, Sales Top Estimates
Sales of AbbVie's most important product, Humira, were mixed. Humira, which treats forms of arthritis and psoriasis as well as Crohn's disease, is facing biosimilar competition in Europe. As a result, global Humira sales slipped 3.7% to $4.94 billion.
The pain was acute in international business. Humira sales plunged 33.5% to $1.05 billion. The Street expected this, however. In the U.S., Humira continued its momentum and sales increased 9.6% to $3.89 billion. Biosimilars will launch in the U.S. in 2023.
Revenue from blood cancer treatments jumped 38.3% to $1.48 billion. But sales from hepatitis C drugs tumbled 19% to $698 million. The market for hepatitis C treatments is maturing in the U.S. and Europe. There's also plenty of competition.
AbbVie Stock Rises On Dividend Boost
Based on the results, AbbVie raised its full-year earnings outlook to $8.90-$8.92, up 4 cents at the midpoint from its prior guidance. Analysts projected AbbVie earnings of $8.93. So, AbbVie's guidance was slightly short.
The pharmaceutical company also announced a plan to increase its quarterly cash dividend to $1.18 per share, up from $1.07 previously. This will begin with the dividend payable Feb. 14 to investors who own AbbVie stock as of Jan. 15.
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