Biopharmaceutical company Amgen (AMGN, Financial) missed expectations by 14 cents, a decrease of 4.62%, as part of the release its fourth-quarter financial results on Thursday.Â
Nevertheless, by Friday morning, the company's stock was trading up 1.88% to $189.05 a share.
Amgen closed the quarter with a non-GAAP earnings per share of $2.89, which is flat on a year-over-year basis. The non-GAAP net income was $2.104 billion, a 2.6% decrease from the comparable of fiscal 2016.
Revenue came in at $5.8 billion, a loss of 2.7% on a year-over-year basis. Amgen missed expectations by $30 million.
For the entire year of fiscal 2017, the company reported total revenues of $22.849 billion. This was a 1% decline from 2016.
The chart below shows the trend in Amgen’s total revenues over the last five fourth quarters and full years:
On a GAAP basis, the healthcare company closed the quarter with a net loss of $4.264 billion, a 320.4% drop from 2016, or with a loss of $5.89 per share.
GAAP results were influenced by the U.S. corporate tax reform.
Total product sales went down 2% to $5.569 billion in fourth-quarter 2017 from $5.663 billion in fourth-quarter 2016.
Among the company's key products, Neulasta sales were $1.114 billion, flat year over year. Enbrel sales were down 13% at $1.423 billion. Aranesp sales were down 7% at $491 million. Prolia sales were up 24% at $574 million.
Sensipar and Mimpara sales were $413 million, flat on a year-over-year basis. XGEVA sales were up 4% at $391 million. Epogen sales were down 15% at $270 million. Kyprolis sales were up 24% at $227 million. Other key products in the portfolio are Repatha, whose sales increased 69% year over year to $98 million, and Blincyto, whose sales increased 59% year over year to $46 million.
For full fiscal 2018, Amgen predicts the following figures of revenues and earnings:
Revenue is excepted to fall in the $21.8 billion and $22.8 billion range. From this top line of income statement, the company predicts to generate earnings of $11.18 to $12.36 per share. On a non-GAAP basis, the net profit will be of $12.60 to $13.70 per share, Amgen reports.
Amgen closed at $185.56 per share Thursday, down 49 cents or a decrease of 0.26% from the previous trading day, with a volume of 4,078,062 shares traded on the New York Stock Exchange.
According to the chart from Yahoo Finance, Amgen gained 23.72% over the 52-weeks through Feb. 1 and outperformed the S&P 500 index by 7.4%:
Source: Yahoo Finance
Amgen has a forward dividend of $5.28 and a forward yield of 2.76%.
Analysts’ average target price for Amgen is $192.86 per share. Analysts’ estimates on Amgen’s target price range between a low of $176 and a high of $216. The target price represents a 3.9% upside from the current share price.
The recommendation rating is 2.3 out of a total of 5.
The company had approximately $41.678 billion in cash and securities as of Dec. 30, a 9.4% increase from the comparable of 2016. The debt outstanding is $35.342 billion and represents a $746 million increment from 2016.
(Disclosure: I have no positions neither in Amgen nor in the S&P 500 index.)
