Amgen Inc. (NASDAQGS: AMGN) is expected to report its first-quarter fiscal 2011 earnings on Wednesday, April 20, 2011. In the last four quarters ending December 31, 2010, AMGN's reported earnings per share exceeded analysts' consensus estimate by margins of 5.70 percent in March 2010, 6.20 percent in June 2010, 7.10 percent in September 2010 and 5.40 percent in December 2010.
Amgen discovers, develops, manufactures, and delivers human therapeutics. Amgen therapeutics have been used around the world in the fight against cancer, kidney disease, rheumatoid arthritis, bone disease, and other serious illnesses. Amgen pioneered the development of products based on advances in recombinant DNA and molecular biology, and launched the some of the biotechnology industry's first blockbuster medicines.
Amgen reported adjusted earnings per share (EPS) of $1.17 for the fourth quarter of 2010, an increase of 11 percent compared with $1.05 for the fourth quarter of 2009. Adjusted net income increased 4 percent to $1.1 billion in the fourth quarter of 2010, compared with $1.06 billion in the fourth quarter of 2009. Full year 2010 adjusted EPS was raised to $5.21 versus $4.91 in 2009, a 6 percent increase. Full year 2010 adjusted net income increased slightly to $5.03 billion versus $5.01 billion in 2009. Total revenue increased 1 percent during the fourth quarter of 2010 to $3.84 billion versus $3.8 billion in the fourth quarter of 2009. For the full year 2010, total revenue increased 3 percent to $15 billion from $14.6 billion in 2009. Cost of sales increased to 15.1 percent of sales for the fourth quarter of 2010 versus 14.3 percent of sales for the fourth quarter of 2009. For 2010, cost of sales increased to 15.0 percent of sales versus 14.5 percent of sales in 2009.
On March 4, 2011, Amgen completed the acquisition of BioVex Group Inc., a privately held biotechnology company based in Woburn, Mass., with additional operations in Abingdon, UK. The acquisition includes OncoVEX(GM-CSF), a vaccine in Phase 3 clinical development that may represent a new approach to treating melanoma and head and neck cancer. The acquisition was initially announced on Jan. 24.
The company expects total revenue for 2011 to be in the range of $15.1 billion to $15.5 billion. Amgen expects 2011 adjusted EPS to be in the range of $5.00 to $5.20, excluding stock option expense, certain expenses related to prior acquisitions and the non-cash interest expense resulting from a change in accounting for convertible debt. The total impact of U.S. health care reform in 2011 is expected to be in the range of $400 million to $500 million. This includes an expected federal excise fee in the range of $150 million to $200 million. The company expects 2011 capital expenditures to be approximately $600 million.
Analysts have estimated an average EPS of $1.29 for the first quarter of fiscal 2011 against an EPS of $1.30 in the comparable period last year. The average revenue estimate for the quarter has been increased to $3.67 billion from $3.59 billion in the prior year's period. This is an estimated increase of approximately 2.10 percent. In the last 52 weeks, the stock has been trading in the range of $50.26 to $61.26. The stock closed at $54.07 on April 5, 2011. The mean target price of the stock is estimated at $64.82.
