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Alberto Abaterusso
Alberto Abaterusso
Articles (1981) 

2 Large Drug Manufacturers Release 1st-Quarter Results

AbbVie, Bristol-Myers Squibb beat expectations

April 26, 2019 | About:

Two large drug manufacturers released first-quarter results before the opening bell on Thursday.

Shares of AbbVie Inc. (NYSE:ABBV) were up 0.85% at $79.34 at close on Thursday after posting non-GAAP earnings of $2.14 per diluted share, topping estimates by 7 cents.

GAAP earnings were $1.65 per diluted share, a 5.2% decline from the prior-year quarter.

Revenue declined 1.3% from the year-ago quarter to $7.83 billion, but beat estimates by $20 million.

Sales of its flagship drug, Humira, which made up 56.8% of total revenue, decreased 5.6% to $4.45 billion as a result of incresaed international competition. Sales of Venclexta, which treats specific forms of lymphocytic leukaemia, more than doubled to $151 million and sales of is hepatitis C drug dropped 11.3% to $815 million. 

For full fiscal 2019, AbbVie forecasts GAAP earnings of $7.26 to $7.36 per share, down 1.75% from previous guidance, and sees non-GAAP earnings per share ranging between $8.73 and $8.83, up 0.9% from prior expectations and versus analysts' expectations of $8.67.

The stock has declined 20% over the last 52 weeks to close at $79.34 on Thursday. The shares are trading below the 200-, 100- and 50-day simple moving average lines. The share price is 4.7% higher than the 52-week low of $75.77 and 35.2% lower than 52-week high of $107.25.

The 14-day relative strength index of 45 suggests the stock is neither overbought nor oversold.

Shares of Bristol-Myers Squibb Co. (NYSE:BMY) closed 2.29% higher at $45.64 on Thursday after the company's non-GAAP earnings of $1.10 per diluted share beat estimates by 2 cents.

GAAP earnings were $1.04 per diluted share, a 14% increase.

Revenue grew 14.1% to $5.92 billion, beating expectations by $200 million.

The New York-based drug manufacturer reported an impressive 14.9% increase in product sales to $5.7 billion, which made up 96.5% of total revenue. Alliance and other revenues declined 6.3% to $207 million.

Sales of Opdivo, a treatment for preventing further growth of cancer, grew 19% to $1.8 billion. Sales of Eliquis, a treatment for lowering the risk of stroke or thrombosis in heart patients, grew 28% to $1.93 billion. Sales of Orencia, a drug used to treat autoimmune disorders, increased 8% to $640 million and sales of Sprycel, a drug used to prevent the spread of a specific type of leukaemia, rose 5% to $459 million.

In addition, sales of Yervoy, a treatment for inoperable or disseminated melanoma, soared 54% to $384 million, while sales of Baraclude, an antiviral medication used for the treatment of chronic hepatitis B, tumbled 37% to $141 million.

For full-year 2019, Bristol-Myers Squibb reaffirmed its expectations for non-GAAP earnings of $4.10 to $4.20 per diluted share and raised its guidance for GAAP earnings to between $3.84 and $3.94.

Shares of Bristol-Myers Squibb closed at $45.64 on Thursday for a market capitalization of $74.57 billion. The stock declined 13% over the past year through April 25. The share price is below the 200-, 100- and 50-day simple moving average lines. The closing price on Thursday was 3% above the 52-week low of $44.30 and 39.5% below the 52-week high of $63.69.

The 14-day relative strength index of 40 suggests the stock is neither overbought nor oversold.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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