Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Amgen 2020 outlook falls short of Street estimates, shares down 3%

Stock MarketsJan 30, 2020 05:34PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Deena Beasley

(Reuters) - Amgen Inc (O:AMGN) on Thursday forecast 2020 earnings well short of current Wall Street estimates, sending shares of the largest U.S. biotechnology company down 3%.

For the full year, the company forecast earnings of $14.85 to $15.60 per share on revenue as high as $25.6 billion. Analysts had estimated 2020 adjusted earnings of $16.14 on revenue of $25.5 billion, according to Refinitiv IBES data.

A company official attributed the difference to lower interest income and Amgen's recently acquired 20.5% stake in China's BeiGene Ltd (HK:6160), which is not yet profitable.

For the fourth quarter of last year, Amgen said its sales fell 2% from a year earlier due to competition from lower-cost generic drugs and biosimilars, but share buybacks enabled the company to post a profit that topped Wall Street estimates.

Sales for the quarter totaled $5.88 billion. Total revenue fell 1% to $6.2 billion, which was ahead of the average analyst estimate of $6.06 billion.

Quarterly adjusted earnings per share rose 6% to $3.64, beating the average Wall Street estimate of $3.48.

Net earnings fell 5% to $2.85 per share due to higher operating costs partially offset by a lower share count.

Sales of older drugs such as white blood cell booster Neulasta and kidney drug Sensipar fell sharply due to competition from cheaper versions. Neulasta was down 43% at $665 million and Sensipar sales were off by 76% at $107 million.

Sales of newer drugs like cholesterol fighter Repatha and migraine drug Aimovig rose. Repatha was up by 26% to $200 million, while Aimovig rose 3% to $98 million in the quarter.

Amgen said it bought back around 6% of its outstanding shares last year.

Shares of the company were down $7.15, or 3.2%, at $219 in after hours trading.

Amgen 2020 outlook falls short of Street estimates, shares down 3%
 

Related Articles

Britain's M&S warns on outlook as profit jumps
Britain's M&S warns on outlook as profit jumps By Reuters - May 25, 2022

LONDON (Reuters) - British retailer Marks & Spencer (OTC:MAKSY) reported a jump in annual profit but joined rivals in cautioning on the outlook for the current year amid a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email