Amgen (AMGN, Financial) released its third-quarter financial results on Oct. 25.
The biopharmaceutical company closed the quarter with non-GAAP EPS of $3.27, an 8% increase from the comparable of 2016. The company beat expectations by 16 cents, generating a positive surprise of 5.10%.
Source: Yahoo Finance
Revenue came in at $5.77 billion, a -0.7% decrease on a year-over-year basis. Amgen missed expectations by $10 million.
For the last quarter of this fiscal, analysts predict revenue will come in at $5.85 billion on average. For the year, they expect a 0.60% decrease to $22.86 billion from $22.99 billion in 2016.
Non-GAAP operating income for the quarter was $3.033 billion, a 4.01% increase from $2.916 billion in the same quarter of 2016. Non-GAAP net income was $2.399 billion versus a net income of $2.276 billion at the end of the prior-year quarter.
Total product sales went down 1% to $5.453 billion in third-quarter 2017 from $5.516 billion in third-quarter 2016.
Among the company's key products, Neulasta sales were $1.123 billion, down 6% year over year. Enbrel sales were down 6% at $1.363 billion. Aranesp sales were down 3% at $516 million. Prolia sales were up 22% at $464 million.
Sensipar and Mimpara sales were $457 million, up 10% on a year-over-year basis. XGEVA sales were down 2% at $387 million. Epogen sales were down 21% at $264 million. Kyprolis sales were up 13% at $207 million. Other key products in the portfolio are Repatha, whose sales increased 122.5% year over year to $89 million, and Blincyto, whose sales increased 79% year over year to $52 million.
The company generated cash flow of $3.5 billion from operations, a 29.6% increase from the third quarter of 2016. After considering capital expenditures of approximately $200 million, flat year over year, the free cash flow was $3.3 billion in the quarter. The latter increased 32% from the free cash flow of $2.5 billion of one year ago.
Amgen expects a full-year revenue between $22.7 billion and $23 billion, which is about the same range the company provided in its previous guidance. EPS will range between $10.79 and $11.37 while non-GAAP EPS will range between $12.50 and $12.70.
Amgen closed at $177.5 per share Wednesday, down $2.87 or minus 1.59% from the previous trading day, with a volume of 4,052,517 shares traded on the New York Stock Exchange.
Amgen is trading with a price-earnings (P/E) ratio of 16.14, a price-book (P/B) ratio of 4.12 and a price-sales (P/S) ratio of 5.73.
The forward P/E ratio is 13.99.
The analysts’ average target price for Amgen is $190.45 per share. Analysts’ estimates on Amgen’s target price range between a low of $165 and a high of $216. The target price represents a 7.3% upside from the current share price.
The recommendation rating is 2.4 out of a total of 5.
The company had approximately $41.4 billion in cash and securities as of Sept. 30, a 5.5% increase from the second quarter of 2017. The debt outstanding is $35.8 billion and represents a $500 million increment from the prior-year quarter.
Disclosure: I have no position in Amgen.
