Amgen Q4 Profit Falls -16%, Revenue Up +11% (AMGN)

Amgen Q4 Profit Falls -16%, Revenue Up +11% (AMGN)


After the bell on Wednesday pharmaceutical company Amgen, Inc. (AMGN) posted a drop in fourth quarter profits due to higher costs. The earnings results were a bit lower than Wall Street predictions.

The Thousand Oaks, California-based company reported a fourth quarter profit of $788 million, or $1.01 per share, down -16% from $934 million, or $1.08 per share, earned a year earlier.

Adjusting for one-time items, fourth quarter EPS was $1.40. This was slightly lower than analysts’ forecast of $1.44, according to FactSet.

The drug maker saw its revenue rise +11% to $4.42 billion in the fourth quarter. This beat consensus views as analysts expected revenue to come in at $4.37 billion.

Amgen said that the reasons for such a steep drop in profit despite increased revenue were a number of higher expenses related to research and development, marketing, and production.

For the full year of 2012, net income rose to $4.35 billion, or $5.52 per share, up from $3.68 billion, or $4.04 per share, earned in 2011. Revenue was up +11% in 2012 to $17.27 billion from $15.58 billion.

Looking forward, the company expected 2013 earnings to be about $6.85 to $7.15 per share. Analysts are predicted a 2013 EPS of $7.

Amgen shares were up slightly during pre-market trading on Thursday. The stock is up +19.4% over the past year.

The Bottom Line
Shares of Amgen (AMGN) have a 2.26% dividend yield, based on last night’s closing stock price of $83.07. The stock has technical support in the $76-$80 price area. If the shares can firm up, we see overhead resistance around the $88-$90 price levels.

Amgen, Inc. (AMGN) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today