Amgen raises forecast as quarterly profit tops estimates
Amgen Inc. announced Monday that its earnings fell in the third quarter on charges from an ongoing restructuring effort, but the company’s adjusted results still surpassed Wall Street forecasts.
The better-than-expected quarter led the Thousand Oaks company to raise its full-year earnings outlook.
Amgen earned $1.24 billion, or $1.61 a share, down from $1.37 billion, or $1.79, a year earlier. Excluding one-time charges associated with job cuts and closing locations, the company would have earned $2.30 a share.
Analysts surveyed by Zacks Investment Research calling for earnings of $2.11 a share, on average.
The world’s largest biotech drug maker posted revenue growth of 6% to $5.03 billion in the period, also exceeding Wall Street forecasts. Analysts expected $4.92 billion, according to Zacks.
In July Amgen announced that it would lay off 12% to 15% of its worldwide workforce and close four sites to free up money needed for business investments, including marketing and other expenses for launching new drugs. The company said Monday that it plans to cut 2,925 jobs by the end of 2015 as part of its effort to streamline operations, reduce management layers and shrink its real estate footprint.
The company’s results were weighed down by $376 million in restructuring costs for the quarter, and Amgen estimates that it will spend $150 million on similar efforts in the fourth quarter. The company expects the total restructuring to result in charges of $835 million to $885 million.
Among its top sellers, sales of anemia drugs Neulasta and Neupogen slid 7% to $1.49 billion while sales of osteoporosis drug Prolia jumped 43% to $255 million.
Amgen raised its adjusted earnings estimate to $8.45 to $8.55 a share, up from its July forecast of $8.20 to $8.40. The company now expects full-year revenue of $19.8 billion to $20 billion, up from $19.5 billion to $19.7 billion.
Analysts expect annual earnings of $8.40 a share on revenue of $19.71 billion, according to FactSet.
Amgen shares, which closed at $148.20, up 94 cents, rose $1.79, or 1.2%, to $149.99 in after-hours trading.
