Amgen Earnings: Higher-Than-Expected Net Income
S&P 500 (NYSE:SPY) component Amgen Inc. (NASDAQ:AMGN) reported net income above Wall Street’s expectations for the third quarter. Amgen is a biotechnology medicines company that discovers, develops, manufactures, and markets medicines for grave illnesses.
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Amgen Inc. Earnings Cheat Sheet
Results: Net income for the medical-bioengineering rose to $1.11 billion ($1.41 per share) vs. $454 million (50 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.
Revenue: Rose 9.5% to $4.32 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Amgen Inc. reported adjusted net income of $1.67 per share. By that measure, the company beat the mean estimate of $1.43 per share. It beat the average revenue estimate of $4.08 billion.
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 8.2% and in the first quarter, the figure rose 5.2%.
Revenue has increased for four quarters in a row. Revenue increased 13.1% to $4.48 billion in the second quarter. The figure rose 9.2% in the first quarter from the year earlier and climbed 3.4% in the fourth quarter of the last fiscal year from the year-ago quarter.
For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 31 cents in the second quarter and by 16 cents in the first quarter.
Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.47 per share to $1.39, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $6.22 per share, a rise from $6.08 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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