Amgen 2nd-qtr 2011 profits down but still top analysts estimates

The world’s largest biotechnology company, USA-based Amgen (Nasdaq: AMGN) has reported second-quarter 2011 profit that topped analysts’ estimates on higher drug sales and said 2011 earnings would reach the upper end of its previous forecast. The stock gained 1.5% to $54.25 on Friday following release of the results.

Net income dipped 3% to $1.17 billion, or $1.25 a share ($1.25 a year earlier). Adjusted for some items, profit of $1.37 beat the average $1.28 estimate of 20 analysts surveyed by Bloomberg. Sales for the quarter grew 4% to $3.96 billion, compared with analysts’ expectations of $3.77 billion.  Amgen also declared its first quarterly dividend, of $0.28 a share, a long-anticipated move that reflects the maturity of the once high-growth biotech company, noted a Wall Street Journal report.

For 2011, the company now expects adjusted earnings and revenue to be at the high-end of its previous projection of $5 to $5.20 a share and $15.1 billion to $15.5 billion, respectively. Wall Street expects adjusted earnings of $5.15 a share on revenue of $15.25 billion, according to Thomson Reuters. The health care reform is estimated to impact sales by $400 million to $500 million in 2011. 2010 revenues were affected by $198 million due to the health care reform.