Amgen Posts 52-Week High, Beats It Again After Earnings

Health and Healthcare

Published: October 27, 2014 4:33 pm

Last Updated: April 27, 2020 3:52 pm

Source: Thinkstock

Drug maker Amgen Inc. (NASDAQ: AMGN) reported third-quarter 2014 results after markets closed Monday afternoon. The biotech company reported quarterly adjusted diluted earnings per share (EPS) of $2.30 and revenues of $5.03 billion. In the same period a year ago, Amgen reported EPS of $1.94 on revenues of $4.75 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $2.11 and $4.96 billion in revenues.

Quarterly adjusted net income rose 19% from $1.48 billion in the year-ago quarter to $1.77 billion this year. Amgen posted $376 million in restructuring charges in the quarter and expects to charge up to $150 million to restructuring in the fourth quarter. Operating expenses fell 5% year-over-year in the third quarter, and operating margin rose 6.9% to 46.7%.

Gross margin fell from 64.6% in the year-ago quarter to 59.3%, primarily due to restructuring charges and acquisition costs. On a non-GAAP basis, the decline in gross margin reflects the impacts of lost patent protection, product mix and pricing pressure in mature markets.

Amgen forecasts full-year 2014 revenues in a range of $19.8 billion to $20 billion and adjusted EPS in a range of $8.45 to $8.55. Capital spending for the year is estimated at $800 million.

The company’s CEO said:

With regulatory submissions for four new products during the quarter, we are at the beginning of an exciting new product cycle. We look forward to describing progress in our long-term growth strategy and opportunities to build additional shareholder value during our Business Review meeting tomorrow.

Total product sales rose 4% year-over-year. The increase was mainly driven by four products: Kyprolis (up 21%), Prolia (up 43%), Neulasta (up 5%) and Xgeva (up 22%).

Shares of Amgen’s stock traded about 0.6% higher in Monday’s after-hours session at $149.00. The stock’s 52-week range is $108.20 to $148.47, a new high set Monday. Amgen looks on its way to a new 52-week high again Tuesday. Thomson Reuters had a consensus analyst price target of around $145.00 before the report.

ALSO READ: The 10 States With the Worst Quality of Life

ALERT: Take This Retirement Quiz Now (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.