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Amgen says adjusted 1Q06 EPS reaches $0.91, raises 2006 EPS guidance to $3.60-$3.70
By Angela McDaniels
Seattle, April 18 - Amgen Inc. said its GAAP earnings increased by 22% to $0.82 per share for the first quarter ended March 31 from $0.67 per share for the first quarter of 2005.
Adjusted earnings increased by 26% to $0.91 per share for the first quarter from $0.72 per share for the first quarter of 2005.
The company raised its adjusted earnings-per-share guidance for 2006 to between $3.60 and $3.70. This estimate includes expected dilution from the Abgenix Inc. acquisition, but excludes stock option expense and certain other expenses.
GAAP net income increased 17% to $1 billion for the first quarter from $854 million for the first quarter of 2005, the company said. Adjusted net income increased 19% to $1.1 billion for the first quarter from $924 million for the first quarter of 2005.
Adjusted earnings and net income exclude certain expenses related to the acquisitions of Immunex and Tularik, stock option expense and certain other items, according to a company news release.
Total revenue increased by 14% to $3.2 billion for the first quarter from $2.8 billion for the first quarter of 2005. Total product sales also increased by 14%, to $3.1 billion for the first quarter from $2.7 billion for the first quarter of 2005.
During the first quarter of 2006, adjusted earnings per share growth exceeded revenue growth by 12 percentage points. This earnings leverage was driven by higher interest income, a lower adjusted tax rate and fewer shares used in the computation of adjusted diluted earnings per share, the company said.
Amgen said it expects this leverage to moderate for the remainder of this year as the company incurs higher research and development expenses and absorbs the dilution related to the Abgenix acquisition.
Cash and marketable securities were $7.1 billion at the end of the first quarter.
Amgen is a biotechnology company based in Thousand Oaks, Calif.
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