Amgen Profit Rises, Lifts FY Outlook - Update

(RTTNews) - Amgen Inc. (AMGN) on Tuesday reported a surge in profit for the first quarter, as revenues grew 11 percent on better pricing and strong demand with research costs falling. Both earnings and revenues for the quarter trumped analysts' estimates. Moving ahead, the drug maker raised its outlook for the full year 2015.

Thousand Oaks, California-based Amgen's first-quarter profit rose to $1.62 billion or $2.11 per share from $1.07 billion or $1.40 per share last year.

Excluding one-time items, adjusted earnings for the quarter improved to $1.91 billion or $2.48 per share from $1.44 billion or $1.87 per share a year ago. On average, 19 analysts polled by Thomson Reuters expected earnings of $2.10 per share for the first quarter. Analysts' estimates typically exclude special items.

Amgen's revenues for the first quarter grew 11 percent to $5.03 billion from $4.52 billion a year earlier. Seventeen analysts had consensus revenue estimate of $4.91 billion for the quarter.

Product sales increased 12 percent from a year ago, as Enbrel rose 13 percent, Prolia increased 39 percent, Epogen improved 16 percent, Sensipar rose 24 percent and Xgeva gained 22 percent. Growth for the quarter was due to price and higher unit demand, the company said in a statement.

Amgen's research and development expenses dropped to $894 million from $1.03 billion last year, while selling, general and administrative costs rose to $1.03 billion from $1.02 billion a year ago.

Looking forward to the full year 2015, the company now expects adjusted earnings of $9.35 to $9.65 per share and revenues of $20.9 billion to $21.3 billion. Analysts currently expect earnings of $9.32 per share on revenues of $20.98 billion for 2015.

Previously, Amgen expected adjusted earnings of $9.05 to $9.40 per share with revenues of $20.8 billion to $21.3 billion.

AMGN closed Tuesday's trading at $168.46, up $2.49 or 1.50%, on the Nasdaq. The stock further gained $4.09 or 2.43% in the after-hours trade.