A number of drug stocks reported strong quarterly results that should now put them on the radar of value investors.
AbbVie (NYSE:ABBV) reported revenue growth of 17.7% Y/Y to $8.236B. Humira sales grew 9% despite generic competition. Sales of $5.124B should allay investor fears on AbbVie. Management is confident it will perform well for the rest of 2018. IT forecast GAAP EPS as high as $6.45 a share, albeit slightly lower than the previous estimate. Non-GAAP will top $7.92 a share.
Teva Pharma (NYSE:TEVA) reported Q3 revenue falling 19.4% but product sales in generics was $922 million. Copaxone sales was $463 million. The revenue drop is a result of the new CEO winding down products that do not make a profit. With a focus on EPS and cash flow, along with a primary goal of cutting debt, Teva will suit patient value investors.
Bausch Health (NYSE:BHC) reported stabilizing revenue in the third quarter. Revenue fell 3.7% to $2.136 billion. Non-GAAP net income came in at $403 million, up 9.8% Y/Y. The company forecast revenue consistent with its previous forecast at $8.15B - $8.35B.
Looking ahead, BHC will continue cleaning up channel inventory and lowering working capital. Still, by holding its guidance, investor confidence improves. That sets a bottom on BHC stock.
