Press "Enter" to skip to content

Amgen Q1 earnings beat Street view; lifts full-year earnings guidance

Biotechnology firm Amgen (Nasdaq: AMGN) reported first-quarter earnings that increased from last year and exceeded estimates, while revenues remained unchanged. Meanwhile, the management revised up its full-year earnings and revenue outlook. Following the announcement, the company’s stock gained modestly during Tuesday’s after-hours trading session.

Amgen Q1 2019 earnings infographic

Earnings, adjusted for special items, were $3.56 per share, compared to $3.47 per share in the last-year quarter. Analysts had forecast a lower profit. Unadjusted earnings dropped to $1.99 billion or $3.18 per share from $2.31 billion or $3.25 per share in the first quarter of 2018, hurt mainly by an increase in operating expenses.

Revenues, meanwhile, remained broadly unchanged at $5.55 billion and came in line with the estimates. The top-line was negatively impacted by a 1% decline in product sales globally, though most of the new products including Prolia, Repatha and KYPROLIS registered double-digit growth.

Robert Bradway, CEO of Amgen, said, “We continue to generate strong, volume-driven growth for our newer products, while effectively defending our mature products. We are also advancing a record number of first-in-class molecules targeting significant areas of unmet need through our pipeline.”

The top-line remained flat as overall sales were negatively impacted by a 1% decline in product sales globally

For the whole of 2019, the management expects revenues in the range of $22 billion to $22.9 billion, which represents a modest increase from the earlier outlook. The guidance range for unadjusted earnings was narrowed to $11.68-$12.73 per share from the previously estimated $11.55-$12.75 per share.

Also see: Amgen Inc Q4 2018 Earnings Conference Call Transcript

The company currently expects adjusted earnings in the range of $13.25 per share to $14.30 per share for 2019, compared to the earlier forecast of $13.10-$14.30 per share. The estimate for full-year capital expenditure is around $700 million.

Early Tuesday, Pfizer (PFE) reported stronger than expected first-quarter earnings and revenues, which also increased from last year. The drugmaker also revised up the profit outlook for fiscal 2019.

After reaching a new peak during the final weeks of last year, Amgen shares lost momentum in 2019 and lost about 7% so far this year. The stock closed Tuesday’s session lower.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Related Articles

Top
%d bloggers like this: