Amgen Q1 Profits Jump 21%; Adjusted EPS Tops Views, Revenues Miss (AMGN)

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 DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here