What happened
Shares of AbbVie (ABBV -2.04%) were jumping 5.5% higher as of 11:24 a.m. ET on Thursday. The nice gain came after the big drugmaker reported its second-quarter results before the market opened.
AbbVie announced Q2 net revenue of nearly $13.9 billion. Although this figure reflected a 4.9% year-over-year decline, it was well above Wall Street's consensus estimate of $13.5 billion.
The company reported earnings per share (EPS) of $1.14 based on generally accepted accounting principles (GAAP). AbbVie's non-GAAP (adjusted) EPS in Q2 was $2.91. This result was 13.6% lower than adjusted EPS in the prior-year period but nonetheless beat the average analysts' estimate of $2.81.
AbbVie also raised its full-year 2023 earnings guidance. It now expects adjusted EPS of between $10.90 and $11.10, up from the previous forecast of $10.57 to $10.97.
So what
The primary narrative about AbbVie this year has been that the company is struggling with the loss of U.S. exclusivity for Humira, its top-selling drug. While that narrative is correct, it's incomplete.
Yes, Humira's sales plunged 25% year over year in Q2. However, the autoimmune-disease drug still managed to make over $4 billion in the quarter.
More importantly, several of AbbVie's other products are firing on all cylinders. For example, sales for Humira's two successors, Skyrizi and Rinvoq, skyrocketed more than 50% and 55% year over year, respectively. Sales for AbbVie's antipsychotic drug Vraylar soared nearly 34%.
Now what
Look for Humira's sales to continue to decline. However, AbbVie should also continue to experience strong momentum for its non-Humira lineup.
In particular, sales for Rinvoq and Skyrizi should keep growing robustly. AbbVie recently won U.S. Food and Drug Administration approval for Rinvoq in treating Crohn's disease. It also announced positive results from a late-stage study of Skyrizi in treating ulcerative colitis.
