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Key Takeaways
- Amgen shares fell 5% Wednesday after the drug developer lowered its full-year earnings guidance.
- Second-quarter revenue jumped 20% year-over-year to $8.4 billion, slightly above expectations, driven by Amgen’s October acquisition of Horizon Therapeutics.
- However, earnings dropped from the year-ago period and missed estimates as costs rose.
Amgen (AMGN) shares tumbled 5% Wednesday after the drug developer lowered its full-year earnings guidance.
The company said it now expects full-year diluted earnings per share (EPS) of between $6.57 and $7.62, down from a prior range of $7.15 to $8.40. Analysts had been looking for EPS of $8.05, according to estimates compiled by Visible Alpha.Â
Revenue Jumps 20%, Boosted by Purchase of Horizon Therapeutics
Amgen reported second-quarter revenue jumped 20% year-over-year to $8.4 billion, slightly above expectations, driven by a 26% increase in sales volume. That growth was due in large part to the company’s October acquisition of Horizon Therapeutics.Â
However, diluted EPS came in at $1.38, a 46% drop from the year before and below expectations as costs rose. Excluding one-time items, adjusted earnings fell 1% to $4.97, also short of projections. Amgen said adjustments were related primarily to costs associated with its purchase of Horizon.
Shares of Amgen closed 5% lower at $312.50 Wednesday following the news, though even with Wednesday’s losses, they’ve gained 8.5% since the start of the year.