Amgen (AMGN) reported better-than-expected results on revenue and earnings for the third quarter of 2018. After gaining briefly following the results release, shares dropped 0.5% in aftermarket hours.
Total revenues rose 2% to $5.9 billion from the same period last year. Product sales grew 1% globally, with double-digit growth in new products like Repatha, Prolia, KYPROLIS and XGEVA.
GAAP net income fell 8% to $1.85 billion while adjusted net income of $2.39 billion remained flat versus the prior-year period. GAAP EPS grew 4% to $2.86 while adjusted EPS increased 13% to $3.69, driven by higher total revenues, lower tax rate and lower weighted-average shares outstanding.
Robert A. Bradway, Chairman and CEO said, “We are in the early stages of launching several new products that offer innovative solutions for patients suffering from serious diseases. Our newer products continue to deliver strong growth in unit volumes.”
Amgen posted sales increases for products such as Repatha, Prolia, KYPROLIS, XGEVA, BLINCYTO, Nplate and Vectibix, driven by higher unit demand. Products such as EPOGEN, Enbrel, Neulasta, Aranesp and NEUPOGEN saw sales declines due to lower unit demand and net selling price along with impact from competition.
Amgen revised its guidance for the full year of 2018 and now expects total revenues to be $23.2 billion to $23.5 billion versus the previous range of $22.5 billion to $23.2 billion.
GAAP EPS is expected to be $12.23 to $12.55 versus the previous range of $11.83 to $12.62, and adjusted EPS is expected to be $14.00 to $14.25 versus the prior outlook of $13.30 to $14.00.
Amgen’s competitor Pfizer (PFE) also reported earnings today. The company beat earnings expectations but missed the mark on revenues.