Shares of biotechnology firm Amgen, Inc. (AMGN) fell during Wednesday trading, despite the fact the company reported better-than expected first quarter profits on higher revenues. However, disappointing drug sales in the quarter had investors selling.
The Thousand Oaks, California-based company posted a first quarter net income of $1.43 billion, or $1.88 per share, up 21% from $1.18 billion, or $1.48 per share, earned a year ago.
Adjusting for certain items, earnings came in at $1.50 billion, or $1.96 per share, in the quarter. This topped Wall Street estimates, as analysts polled by Thomson Reuters were expecting the company to earn $1.84 per share in the quarter.
Amgen’s quarterly revenue rose 5% to $4.24 billion from $4.05 billion last year. This was below the analysts’ expectation of $4.37 billion.
Despite an increase in both profit and revenue in the first quarter, this was largely helped by federal and state tax benefits. Overall drug sales did rise 6%, but this disappointed analysts and investors.
Looking ahead to 2013, the company now expects adjusted earnings to be above the midpoint of the guidance range of $7.05 to $7.35 per share. Amgen also maintains its revenue guidance of $17.8 billion to $18.2 billion. Analysts expect the company to earn $7.21 per share on revenues of $18.07 billion in 2013.
Amgen shares were down $7.05, or -6.67%, during Wednesday morning trading. The stock is up +26.48% year-to-date.
The Bottom Line
Shares of Amgen (AMGN) have a dividend yield of 1.78% based on Wednesday’s intraday trading price of $105.71 and the company’s annualized dividend payout of $1.88 per share.
Amgen, Inc. (AMGN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.