Amgen beats Street on earnings, stock fluctuates
Amgen shares were priced in a narrow range in after-market trading on Jan. 27 after the company reported earnings and sales that beat analyst expectations.
The world’s largest biotechnology company said fourth-quarter profits were $1.29 billion, or $1.68 per share. When adjusted for one-time gains, earnings were $2.16 per share at the Thousand Oaks-based company.
The results topped Wall Street expectations, according to Zacks Investment Research, which reported the average earnings estimate of analysts it surveyed at $2.05 per share. The company’s stock initially fell 34 cents to $158.50 in after hours trading but subsequently rose past the $159 mark.
Revenue also exceeded forecasts at $5.33 billion in the period. Analysts anticipated $5.19 billion, according to Zacks. Sales of Amgen’s Enbrel drug for rheumatoid arthritis were stronger than analyst expectations and it benefited from a tax credit.
Amgen, which has seen a number of biotech and pharma rivals face challenges from activist shareholders in the past year, expects full-year earnings in the range of $9.05 to $9.40 per share. The company said it expects 2015 revenue in the range of $20.8 billion to $21.3 billion.
Editor’s note: This story was updated at 4:45 p.m. to reflect updated trading in the stock.