Amgen Earnings Cheat Sheet: Here’s What You Need to Know About the Quarter

Rising costs did not help S&P 500 (NYSE:SPY) component Amgen Inc. (NASDAQ:AMGN) in the first quarter as profit dropped from a year earlier. Amgen Inc. is a biotechnology medicines company that discovers, develops, manufactures and markets medicines for grave illnesses.

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Amgen Earnings Cheat Sheet for the First Quarter

Results: Net income for the biotechnology company fell to $1.13 billion ($1.32/share) vs. $1.17 billion ($1.18/share) a year earlier. A decline of 3.6% from the year earlier quarter.

Revenue: Rose 3.2% to $3.71 billion YoY.

Actual vs. Wall St. Expectations: AMGN (NASDAQ:AMGN) beat the mean analyst estimate of $1.29/share. Estimates ranged from $1.13 per share to $1.37 per share.

Quoting Management: “We had solid revenue growth in the first quarter,” said Kevin Sharer, chairman and CEO. “Prolia continues to build momentum and XGEVA is off to a strong start. Our operating costs grew in the quarter as we absorbed the new U.S. Healthcare Reform Excise Fee, invested in launches of Prolia and XGEVA and in clinical development programs transitioning to Phase 3.”

Key Stats: Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell six percentage points to 84.8% from the year earlier quarter. Over that time, margins have contracted on average 1.8 percentage points per quarter on a year-over-year basis.

Net income has increased 0.9% year over year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 14.5% from the year earlier quarter.

Over the last five quarters, revenue has increased 3% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 8.6% from the year earlier quarter.

Competitors to Watch: Johnson & Johnson (NYSE:JNJ), Novartis AG (NYSE:NVS), Pfizer (NYSE:PFE), GlaxoSmithKline (NYSE:GSK), Biogen (NASDAQ:BIIB), Genzyme (NASDAQ:GENZ), Affymax (NASDAQ:AFFY), Abbott Labs (NYSE:ABT) and Sanofi-Aventis (NYSE:SNY).

Today’s Performance: Shares of AMGN (NASDAQ:AMGN) are trading at $55.45 as of April 20, 2011 at 4:38 PM ET, down 1.3% from the previous closing price of $55.18.


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