Summary
AbbVie Inc. (ABBV) filed an 8-K on July 6, 2022, to provide preliminary updates on its expected financial results for the second quarter of 2022 and revise its full-year guidance. The company anticipates reporting acquired in-process research and development (IPR&D) and milestones expenses of $269 million on a pre-tax basis for Q2 2022. This expense is expected to negatively impact both GAAP and adjusted non-GAAP diluted earnings per share (EPS) by approximately $0.14. Despite this one-time expense, AbbVie has updated its full-year 2022 adjusted diluted EPS guidance to a range of $13.78 - $13.98. The company also provided Q2 2022 adjusted diluted EPS guidance of $3.24 - $3.28, which now includes the impact of the anticipated IPR&D and milestones expense. Investors should note that these Q2 results are preliminary and subject to final financial closing procedures, and the company does not typically forecast these specific types of expenses due to their unpredictable nature.
Key Highlights
- 1AbbVie expects Q2 2022 acquired IPR&D and milestones expense of $269 million (pre-tax).
- 2This expense will reduce Q2 2022 GAAP and adjusted non-GAAP diluted EPS by an estimated $0.14.
- 3Full-year 2022 adjusted diluted EPS guidance is revised to $13.78 - $13.98, including the Q2 expense.
- 4Q2 2022 adjusted diluted EPS guidance is provided as $3.24 - $3.28, incorporating the expense impact.
- 5The company does not forecast acquired IPR&D and milestones expenses due to inherent uncertainty.
- 6The reported Q2 results are preliminary and subject to finalization.