Amgen closed the first quarter of 2018 with non-GAAP earnings per share of $3.47, which is a 10% increase on a year-over-year basis. Net income was $2.466 billion, a 6% increase from the comparable of fiscal 2017. The healthcare company beat consensus on earnings by 22 cents.
Revenue came in at $5.55 billion, a gain of 2% on a year-over-year basis. Amgen beat expectations by $160 million.
The chart below shows the trend in Amgen’s total revenues over the last five first quarters:
Total product sales went up 3% to $5.343 billion in the first quarter from $5.199 billion a year ago.
Among the company's key products, Neulasta sales were $1.155 billion, a 5% decline year-over-year. Enbrel sales were down 6% at $1.105 billion. Aranesp sales were down 11% at $454 million. Prolia sales were up 16% at $494 million. Sensipar and Mimpara sales were $497 million, up 18% on a year-over-year basis. Xgeva sales were up 11% at $445 million. Epogen sales were down 10% at $244 million. Kyprolis sales were up 17% at $222 million. Other key products in the portfolio are Repatha, whose sales increased 151% year-over- year to $123 million, and Blincyto, whose sales increased 44% year-over-year to $49 million.
For full fiscal 2018, Amgen predicts the following figures of revenues and earnings:
Revenue is excepted to fall in the $21.9 billion and $22.8 billion range. From the top line of the income statement, the company predicts to generate earnings of $11.30 to $12.28 per share. On a non-GAAP basis, the net profit will be $12.80 to $13.70 per share..
In addition, from operations the company generated a cash flow of $2.727 billion, a 14.3% growth from the comparable of fiscal 2017. The company closed the quarter with approximately $32.2 billion in cash and securities, a 6.2% decrease from the comparable of 2017. The debt outstanding is $35.5 billion and represents a $1.4 billion increment from a year ago.
According to the chart powered by GuruFocus, Amgen gained 4% over the 52-weeks through April 24 and is trading at $171.94 per share:
Some indicators on Amgen says that the stock has a forward dividend of $5.28 and a forward yield of 3.07%. The 52-week range is $152.16 to $201.23 per share.
Analysts’ average target price for Amgen is $195.14 per share. Analysts’ estimates on Amgen’s target price ranges between a low of $165 and a high of $224. The target price represents a 13.5% upside from the current share price.
The recommendation rating is 2.4 out of a total of 5.
(Disclosure: I have no positions in Amgen.)
