U.S. Markets closed

2 Large Drug Manufacturers Release 1st-Quarter Results

- By Alberto Abaterusso

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

Shares of AbbVie Inc. (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. (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.

Read more here:



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here .

This article first appeared on GuruFocus.