AbbVie beats analyst expectations, even with lower earnings

Drug manufacturer AbbVie, which recently walked away from a merger with Irish drugmaker Shire, reported third-quarter earnings of $506 million, down 47% compared with the same period last year. It did, however, manage to beat analyst expectations for adjusted earnings at 89 cents per share.

The adjusted figure—which surpassed expectations by roughly 12%—excludes intangible asset amortization costs. The majority of one-time costs related to termination of the Shire transaction will be reflected in the company's fourth-quarter earnings, executives said. The North Chicago-based drugmaker had said earlier this month it would pay $1.64 billion as a breakup fee for not completing the Shire deal.

Abbvie's quarterly revenues rose 7.8% to $5 billion, from $4.7 billion in the same period in 2013. Quarterly revenue growth was driven by strong sales of its arthritis blockbuster, Humira, the world's top-selling drug for the second straight year. Third-quarter global sales from the drug were $3.3 billion, up 17.5% from the previous quarter. Humira accounts for the bulk of AbbVie sales. Its U.S. sales rose 25% in the quarter.

Net earnings year-to-date for AbbVie were $4.1 billion, down just 1.3%. Net revenue was up 6% at $14.5 billion, as compared to $13.7 billion the prior year.

Seeing promising earnings-per-share results, AbbVie raised its EPS guidance for the year to between $3.25 and $3.27, up from $3.06 to $3.16, excluding any revenue from the expected launch of the company's new hepatitis C treatment, which is awaiting approval. AbbVie shares were trading at $63.52 in midday activity, up $2.34 per share on the earnings report.

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