Amgen quarterly profit tops Street view, 2019 forecast falls short

Amgen quarterly profit tops Street view, 2019 forecast falls short

Amgen Inc on Tuesday reported higher-than-expected fourth-quarter profit as sales rose and tax expense fell, but competition for older medicines is growing and the drugmaker forecast 2019 earnings below Wall Street estimates.

FILE PHOTO: File photo of an Amgen sign at the company's office in South San Francisco
FILE PHOTO: An Amgen sign is seen at the company's office in South San Francisco, California in this October 21, 2013 photo. REUTERS/Robert Galbraith/File Photo

REUTERS: Amgen Inc on Tuesday reported higher-than-expected fourth-quarter profit as sales rose and tax expense fell, but competition for older medicines is growing and the drugmaker forecast 2019 earnings below Wall Street estimates.

For the full-year, Amgen projected adjusted earnings of US$13.10 to US$14.30 per share on revenue of US$21.8 billion to US$22.9 billion. Wall Street analysts, on average, had forecast US$14.61 per share on revenue US$22.9 billion, according to IBES data from Refinitiv.

The world’s largest biotechnology company posted a net profit of US$1.93 billion, or US$3.01 per share, compared with a net loss of US$4.26 billion, or US$5.89 per share, a year ago, when it took a large charge related to changes in U.S. corporate tax laws.

Excluding items, Amgen said it had adjusted earnings for the quarter of US$3.42 per share. Analysts, on average, expected US$3.27 per share.

Total revenue for the quarter rose 7 percent to US$6.23 billion, beating the average analyst estimate of US$5.84 billion.

The rise in sales was driven largely by increased demand for medicines such as cancer drug Kyprolis, cholesterol fighter Repatha and osteoporosis treatment Prolia.

(Reporting By Deena Beasley; Editing by Bill Berkrot)

Source: Reuters

Bookmark