Shares in Amgen (NSDQ:AMGN) rose slightly today after the biotech missed expectations on Wall Street with its fourth-quarter earnings, but topped EPS estimates for the year ahead.
The Thousand Oaks, Calif.-based company swung to a net loss in Q4 thanks to a $6 billion tax charge, posting -$4.26 billion on sales of $5.8 billion in the 3 months ended Dec. 31, for a sales loss of -3% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were $2.89, far behind consensus on The Street.
Amgen said it expects to post adjusted EPS between $12.60 and $13.70 on sales of $21.8 billion – $22.8 billion in 2018.
“With strong volume-driven growth for our recently launched products and a promising new product pipeline, we are well positioned for future growth,” chairman & CEO Robert Bradway said in prepared remarks. “We expect several developments to provide an additional boost for these products, most notably the recent inclusion of cardiovascular outcomes data in the Repatha (evolocumab) prescribing information.”
In 2017, the company posted $1.98 billion in profits on sales of $21.8 billion, falling below estimates on The Street.
Thanks to the recently-enacted tax reform legislation in the U.S., Amgen projected a 2018 tax rate of 14-15% and said it plans to invest $3.5 billion over the next five years on projects like a new manufacturing plant in the U.S.
The company also took a $79 million hit last year due in part to recovery efforts after Hurricane Maria, according to a report from CNBC.
AMGN shares were trading at $186.30 apiece today in mid-morning activity, up 0.4%.
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