AbbVie Inc (NYSE:ABBV) released the earnings results from its third fiscal quarter before opening bell this morning. The company posted adjusted earnings of 89 cents, and 8.5% increase and ahead of the previously provided guidance of between 77 cents and 79 cents per share, on $5.02 billion in revenue, a 7.8% increase year over year. Analysts had been looking for earnings per share of 77 cents on $4.83 billion in revenue.
Key metrics from AbbVie’s earnings report
Reported earnings per share were 31 cents, compared to 60 cents in the same quarter last year.
AbbVie reported that it loss exclusivity for its lipid franchise, and that excluding lipid sales, revenue rose 13.5%. The drug maker saw continued strength in its biologic drug Humira, which led the increase in sales. Revenue from Humira rose 17.5% year over year. During the third quarter, the U.S. Food and Drug Administration approved Humira to reduce symptoms and achieve and maintain remission in pediatric patients who suffer from Crohn’s disease.
Earlier this month, AbbVie and Shire PLC (ADR) (NASDAQ:SHPG) (LON:SHP) agreed to end the proposed merger after AbbVie’s board withdrew its support for the deal. The withdrawal was in connection with the U.S. Dept. of the Treasury’s changes that were designed to make tax inversion deals less attractive for corporations. AbbVie had been interested in merging with Shire as a way to move its headquarters overseas and reduce its corporate tax bills.
AbbVie raises guidance
“We exceeded our outlook for the quarter and have significantly raised our original 2014 guidance,” said AbbVie Chairman and CEO Richard A. Gonzalez in a statement. “In the fourth quarter, we look forward to the U.S. approval of our interferon-free HCV combination, which will further accelerate sales and earnings growth in 2015 and beyond.”
The pharmaceutical company also increased its full year guidance this morning, raising it from between $3.06 and $3.16 per share to between $3.25 and $3.27 per share