Amgen Inc. (NASDAQ: AMGN) has posted some very highly anticipated and uninteresting earnings. The biotech giant reported $0.98 EPS net and $1.08 non-GAAP EPS on $3.31 billion in revenue, while Thomson Reuters had estimates of $1.15 in non-GAAP EPS and $3.63 billion in revenue.
Amgen is also trimming its forecast for 2009 to $4.55 to $4.75 non-GAAP EPS and $14.4 billion to $14.8 billion in revenues. Thomson Reuters estimates were $4.62 EPS and $14.9 billion in revenue for 2009. Unfortunately, this represents a drop from $15.003 billion in revenue from 2008.
The good news is that the net income was more than $1 billion for the quarter. Amgen also ended the quarter with $10.4 billion in cash and short-term instruments. The bad news is that there is no top-line growth. We have argued that Amgen is really just a drug stock stock that masquerades as a biotech stock. That is looking more and more the case today.
Shares of the biotech compnay traded up almost 4% at $46.82 today, but they are trading at $45.50 or so in the after-hours reaction.
With a 52-week trading range of $41.55 to $66.51, we aren’t ready to damn the company here because of its value proposition with $10 billion in cash and a forward earnings multiple of right around 10-times earnings. But with no growth, we can’t get excited either. We’d treat this as a coin toss now.
JON C. OGG
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
