Amgen (AMGN) got a bit of good news last week, but just a bit. The company’s Aranesp anemia drug for small cell lung cancer patients undergoing chemotherapy did not cause more deaths in patients in a recent trial when compared with a group taking a placebo. There had been concerns to the contrary.
The stock closed at $60 the day before the disclosure. It jumped above $64 three trading days ago, and stock tried to rally into earnings but ended up nearly flat at $62.19. The good drug news could not prop the shares up.
Over the last year, the company has underperformed its rival Genentech (DNA) which is up less that 5% while Amgen is down about 7%.
Wall St. expected Amgen to post earnings of $1.08 a share, according to a poll of analysts conducted by Thomson Financial, vs. 91 cents a share in the first quarter of 2006. Revenue was expected to rise to $3.73 billion from $3.22 billion in the same period last year.
As it turned out, total revenue increased 15 percent during the first quarter of 2007 to $3,687 million versus $3,217 million in the first quarter of 2006. The company reported reported adjusted earnings per share, excluding stock option expense and certain other expenses, of $1.08 for the first quarter of 2007, an increase of 19 percent compared to $0.91 during the first quarter of 2006.
It was "kiss your sister" earnings news, and the stock moved was flat after hours at 4.10 PM
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks