Amgen Profit Surges, Lifts FY Outlook

(RTTNews) - Amgen Inc. (AMGN) Wednesday reported a 50 percent surge in third-quarter profit, driven largely by sales of arthritis drug Enbrel, and osteoporosis treatments Xgeva and Prolia. Both earnings and sales for the quarter trumped Wall Street estimates.

Moving ahead, the biotechnology company lifted its outlook for 2015.

Thousand Oaks, California-based Amgen's profit surged to $1.86 billion or $2.44 per share from $1.24 billion or $1.61 per share last year.

Excluding one-time items, adjusted earnings for the quarter improved to $2.08 billion or $2.72 per share from $1.77 billion or $2.30 per share a year ago. On average, 16 analysts polled by Thomson Reuters expected earnings of $2.38 per share for the quarter. Analysts' estimates typically exclude special items.

Amgen's revenues for the third-quarter rose 14 percent to $5.72 billion from $5.03 billion last year. Analysts had a consensus revenue estimate of $5.32 billion for the quarter.

Product sales increased 14 percent from a year ago, as Enbrel jumped 30 percent, Neulasta rose 6 percent, Aranesp increased 4 percent. Xgeva grew 19 percent, while prolia jumped 25 percent. Growth for the quarter was due to price, higher unit demand and low inventory levels in the prior year, the company said in a statement.

Amgen's research and development expenses increased 11 percent to $1.09 billion, while selling, general and administrative costs rose 17 percent to $1.21 billion.

CEO Robert Bradway said, "With several innovative medicines still in development, we are well on the way to achieving our long-term objectives for shareholders and patients alike."

For the full year 2015, Amgen now expects adjusted earnings of $9.95 to $10.10 per share on sales of $21.4 billion to $21.6 billion. Earlier, the company expected earnings of $9.55 to $9.80 per share on sales of $21.1 billion to $21.4 billion.

Analysts currently expect earnings of $9.76 per share on sales of $21.25 billion in 2015.

For the full year 2016, the company expects adjusted earnings of $10.35 to $10.75 per share on revenues of $21.7 billion to $22.3 billion. Analysts currently estimates earnings of $10.73 and revenues of $22.12 billion for 2016.

AMGN closed Wednesday's trading at $162.62, up $0.64 or 0.39%, on the Nasdaq. The stock further gained $2.38 or 1.46% in the after-hours trade.