After the closing bell rang yesterday, Amgen (NASDAQ: AMGN) announced a second-quarter profit that increased 40% compared to a year ago. The company earned $1.29 per share compared to 84 cents per share a year ago. Not only did the pharmaceutical firm top its previous-year results, but it also outpaced the Street's estimated earnings of $1.16 per share. Quarterly revenue dropped to $3.71 billion from $3.76 billion a year ago, but AMGN still topped the consensus revenue estimate of $3.58 billion. Total product sales for AMGN increased 1% when taking the impact of foreign exchange out of the equation. Looking ahead, AMGN forecast full-year adjusted earnings between $4.80 and $4.95 per share, far better than its earlier forecast of $4.55 to $4.75 per share and the Street's expected $4.57 per share.
The company also announced a collaboration with GlaxoSmithKline (NYSE: GSK) to share commercialization of AMGN's denosumab, which is used for postmenopausal osteoporosis. The agreement includes Europe, Australia, New Zealand and Mexico once the drug receives approval in those countries. AMGN will commercialize the treatment in the U.S. and Canada. The collaboration should expand access to denosumab worldwide, which should help patients dealing with osteoporosis and bone-loss conditions.
Technically, the shares should have a nice day thanks to this news of solid earnings and a stronger forecast. On a short-term basis, AMGN has battled through resistance in the $60 region and could be poised for a nice pop in reaction to the earnings news. This region has been rather important in the equity's past, and it is no different now. The round-number $60 level has had plenty of opportunities to provide support in the past, failing nearly every time. With the opportunity for the stock to put $60 in its rear-view mirror, we could see the level finally step up and act as support.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
