Health and Healthcare
Why Amgen Is Up Despite Falling Product Sales
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When Amgen Inc. (NASDAQ: AMGN) released its second-quarter financial results after the markets closed on Tuesday, the firm said that it had $3.97 in earnings per share (EPS) and $5.9 billion in revenue. That compared with consensus estimates of $3.58 in EPS and $5.66 billion in revenue, as well as the $3.83 per share on $6.06 billion posted in the same period from last year.
During the most recent quarter, revenues decreased 3% year over year, reflecting increasing competition due to patent expirations. Product sales fell 2% in the time as well.
In terms of its product sales, Amgen reported as follows:
Looking ahead to the full year, the company expects to see EPS in the range of $13.75 to $14.30 and revenue between $22.4 billion and $22.9 billion. Consensus estimates are calling for $13.97 in EPS and $22.59 billion in revenue for the year.
Apart from this, Amgen said that its experimental cancer drug AMG510 demonstrated activity in patients with colorectal and appendiceal cancer. Previously, the firm presented data in June suggesting AMG510 appeared to be effective against lung cancer. Amgen expects to begin a trial later this year that could serve as the basis for a U.S. regulatory application seeking approval.
Robert A. Bradway, board chair and chief executive, commented:
With our newer products generating strong volume gains globally and many first-in-class medicines advancing through our pipeline, we are well positioned to serve patients and deliver long-term growth for our shareholders.
Shares of Amgen closed Tuesday at $176.45 but traded early Wednesday at $181.88. The 52-week range is $166.30 to $210.19, and the consensus price target is $204.43.
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