Amgen (NASDAQ:AMGN) revealed Friday stronger-than-expected second-quarter earnings on record product sales, though higher costs forced its profit lower.
The Thousand Oaks, Calif.-based maker of human therapeutics in support of cancer, nephrology and inflammation, posted net income of $1.17 billion, or $1.25 a share, compared with $1.2 billion, or $1.25 a share, in the same quarter last year.
Excluding special items, the company earned $1.37 a share, ahead of average analyst estimates polled by Thomson Reuters of $1.28 a share. Revenue for the three months ended June 30 was $4 billion, up from $3.8 billion a year ago, beating the Streets view of $3.78 billion.
Our products recorded a strong 8% growth during the quarter, said Amgen CEO Kevin Sharer. Our business has momentum and we expect to be at the upper end of our revenue and EPS guidance ranges for the year.
The company, which will pay a dividend of 28 cents a share on Sept. 8 to stockholders of record as of Aug. 18, now expects fiscal 2011 income in the range of $5 to $5.20 a share on sales of $15.1 billion to $15.5 billion. Wall Street analysts are predicting a profit of $5.15 billion on sales of $15.25 billion.
U.S. product sales climbed 7% to $2.98 billion during the second quarter, while international sales increased 11% to $918 million. Strong sales growth across all of its products helped to offset a sales decline in Aranesp, the companys anemia drug.
While sales improved, a 14.6% decline in cost of sales and fewer capital expenditures could not wholly offset higher research and development, and selling, general and administrative expenses.