Amgen profit tops Wall Street expectations; raises 2014 outlook
By Bill Berkrot
(Reuters) - Amgen Inc (AMGN.O) on Monday reported higher-than-expected third quarter earnings and revenue, even as net profit fell due to a hefty restructuring charge, and the company raised its full-year forecast and the number of job cuts it expects to make.
The world's largest biotechnology company recorded a $376 million charge related to restructuring moves announced July 29 and expects to take another charge of up to $150 million in the fourth quarter, as well as additional charges next year.
Amgen shares rose 1 percent. They are up about 20 percent since the restructuring announcement that involved plant closings and job cuts, now expected to exceed 2,900. The company had previously estimated 2,400 to 2,900 job cuts as it looks to reallocate resources to prepare for the launch of new medicines, including a potential multibillion-dollar cholesterol drug.
Further details of the restructuring are expected to be laid out at a business update for analysts and investors in New York on Tuesday.
Excluding items, Amgen earned $2.30 per share, exceeding analysts' average expectations by 19 cents, according to Thomson Reuters I/B/E/S.
Amgen said it now expects 2014 adjusted earnings of $8.45 to $8.55 per share, up from the boosted forecast it provided in July of $8.20 to $8.40 per share. The company expects full-year revenue of $19.8 billion to $20 billion. It previously forecast $19.5 billion to $19.7 billion.
"The numbers on the top line were a little better than we thought and on the bottom line in particular they were very strong," said Cowen and Co analyst Eric Schmidt.
"The guidance went up. It looked very conservative, but also certainly welcome," he added.
Amen posted a net profit of $1.24 billion, or $1.61 per share, down from a profit of $1.37 billion, or $1.79 per share, a year ago.
Revenue for the quarter rose 6 percent to $5.03 billion, edging past Wall Street estimates of $4.96 billion.
Sales of the white blood cell booster Neulasta rose 5 percent to $1.19 billion, topping the $1.13 billion analysts had expected.
Kyprolis, the multiple myeloma drug at the heart of Amgen's nearly $10 billion acquisition of Onyx Pharmaceuticals last year, had sales of $94 million, exceeding analysts' expectations of $87 million and the previous quarter's $78 million. Kyprolis still lags Celgene's new rival drug Pomalyst, which rang up sales of $181 million for the quarter.
Sales of the osteoporosis treatment Prolia jumped 43 percent to $255 million, topping analysts' estimates of $236 million, but down from $264 million in the prior quarter.
The blockbuster rheumatoid arthritis drug Enbrel saw sales fall three percent to $1.12 billion, shy of the $1.17 billion analysts were expecting. Inventory stocking issues hurt Enbrel in the quarter, the company said.
Amgen shares rose to $149.68 in extended trading from a Nasdaq close at $148.20.
(Reporting by Bill Berkrot; Editing by Chris Reese, Meredith Mazzilli and Nick Zieminski)
