Amgen, Inc. (AMGN) Stock Sinks Despite Q3 Earnings Beat

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Amgen, Inc. (NASDAQ:AMGN) stock is taking hits after the release of its earnings report for the third quarter of 2016.

Amgen, Inc., AMGN stockAmgen, Inc. reported earnings per share of $3.02 for the third quarter of 2016. This represents an 11% increase over the earnings per share of $2.72 reported during the same time last year. It also came in above the $2.79 that Wall Street was looking for in the quarter.

Revenue reported by Amgen, Inc. in the third quarter of the year was $5.81 billion. This is up 2% from its revenue of $5.72 billion that it reported in the third quarter of 2015. Analysts were expecting the company to report revenue of $5.73 billion.

Amgen, Inc. also reported operating income of $2.92 billion for its third quarter of 2016. Operating income reported by the biotechnology company in the third quarter of the year prior was $2.69 billion.

Net income reported by Amgen, Inc. in the third quarter of 2016 was $2.78 billion. AMGN had reported net income of $2.08 billion during the same time of last year.

Amgen, Inc. saw mediocre sales of Enbrel, which is one of the company’s major drugs. Sales for the drug were flat when compared to last year. AMGN also said it expects Enbrel sales will see minimal net price growth in 2017.

Amgen, Inc. also updated its guidance for the full year of 2016. It now expects earnings per share to range from $11.40 to $11.55 for the year. It’s expectations for revenue places it between $22.6 billion and $22.8 billion. Wall Street is expecting the company to report earnings per share of $11.36 and revenue of $22.77 billion for the full year of 2016.

AMGN stock was down 9% as of Friday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/amgen-inc-amgn-stock/.

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