Amgen Posts 52-Week High, Beats It Again After Earnings
Amgen reported better-than-expected third-quarter 2014 results after markets closed Monday afternoon.
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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.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.