Amgen Posts Upbeat Q3 Results, Lifts Forecast

reported stronger-than-expected results for the third quarter and raised its 2015 forecast. The Thousand Oaks, California-based company reported a quarterly profit of $1.86 billion, or $2.44 per share, compared to $1.24 billion, or $1.61 per share, in the year-ago period. Excluding items, the company's earnings surged to $2.72 per share from $2.30 per share. Its revenue gained 14 percent to $5.72 billion. However, analysts were estimating a profit of $2.38 per share on revenue of $5.33 billion. The average estimate among 88 Estimize users was for earnings of $2.44 per share and revenue of $5.36 billion. Its operating income climbed to $2.34 billion from $1.47 billion. Total product sales rose 14 percent for the third quarter. The company's sales of Enbrel increased 30 percent to $1.46 billion. Its sales of osteoporosis drug Prolia jumped 25 percent to $320 million, while Xgeva sales surged 19 percent to $378 million. Sales of Neulasta rose 6 percent to $1.27 billion, while Aranesp sales gained 4 percent to $493 million. Operating expenses surged 10 percent in the quarter, while research & development expenses jumped 11 percent. During the quarter, Amgen repurchased 4.6 million shares of common stock at a total cost of $0.7 billion. "We delivered record revenues, adjusted earnings and cash flow in the third quarter, while improving our operating margins and investing in six exciting new product launches," said Robert A. Bradway, chairman and chief executive officer. "With several innovative medicines still in development, we are well on the way to achieving our long-term objectives for shareholders and patients alike." Amgen now expects 2015 earnings of $9.95 to $10.10 per share, and revenue of $21.4 billion to $21.6 billion. The company had earlier expected earnings of $9.55 to $9.80 per share, and revenue of $21.1 billion to $21.4 billion. For 2016, Amgen projects earnings of $10.35 to $10.75, on revenue of $21.7 billion to $22.3 billion. Analysts expected earnings of $10.76 per share on revenue of $22.17 billion. Amgen shares gained 1.56 percent to $165.20 in the after-hours trading session.