by Ian Harvey
July 29, 2017
AbbVie Inc (NYSE:ABBV)
Here is an overview of AbbVie Inc after reporting earnings. This options trade was recommended on Monday, July 24, 2017, with the company reporting on Thursday July 27; producing major potential profits within a very short period of executing the trade.
The Suggestion……from “Earnings Predictions for the Week Ahead”
Although Humira is doing well, the company is concerned about the product’s long-term prospects owing to the potential biosimilar competition; also a Humira patent litigation a concern. Viekira faces intense pricing and competitive pressure in the HCV market; and the weak performance continues this year with sales expected to decline to $1 billion in 2017.
Option trade to consider: Buy the ABBV SEPT 15 2017 72.500 PUT at approximately $0.65.
AbbVie reported adjusted earnings of
$1.42 per share on $6.94 billion in revenue, compared to the analyst estimates
of $$1.40 per share and $6.93 billion in revenue. In last year’s second
quarter, the company posted $6.45 billion in revenue and adjusted earnings of
$1.26 per share.
On a GAAP basis, AbbVie 2Q 17 earnings
per share rose to $1.19 from 98 cents per share last year. Humira sales rose
13.7% to $4.7 billion, while Imbruvica sales rose 42.6% to $626 million.
Viekira sales fell 41.4% to $488 million, while sales of Creon rose 15.6% to
AbbVie confirmed its previously provided
GAAP earnings outlook of $4.55 to $4.65 per share and adjusted earnings
guidance of $5.44 to $5.54 per share.
After the AbbVie 2Q 17 earnings were
released, the company’s stock was little changed in premarket trades as it
hovered around $71.75 per share.
Shares of AbbVie touched a low on Friday of $69.38, on the back of cautious comments. AbbVie said it would be cautious with drug pricing, especially for Humira, the world's biggest selling drug, sending its shares down 2 percent, despite the drugmaker's quarterly profit narrowly beating estimates.
Within four days this trade produced a potential profit of 385%!
ACTION TO TAKE
The results say it all!