Amgen Stock Slides on Lowered Guidance

Amgen (AMGN) shares tumbled 5% Wednesday after the drug developer lowered its full-year earnings guidance.

The company said it now expects full-year diluted earnings per share (EPS) of between $6.57 and $7.62, down from a prior range of $7.15 to $8.40. Analysts had been looking for EPS of $8.05, according to estimates compiled by Visible Alpha. 

Revenue Jumps 20%, Boosted by Purchase of Horizon Therapeutics

Amgen reported second-quarter revenue jumped 20% year-over-year to $8.4 billion, slightly above expectations, driven by a 26% increase in sales volume. That growth was due in large part to the company’s October acquisition of Horizon Therapeutics. 

However, diluted EPS came in at $1.38, a 46% drop from the year before and below expectations as costs rose. Excluding one-time items, adjusted earnings fell 1% to $4.97, also short of projections. Amgen said adjustments were related primarily to costs associated with its purchase of Horizon.

Shares of Amgen closed 5% lower at $312.50 Wednesday following the news, though even with Wednesday’s losses, they’ve gained 8.5% since the start of the year.