Amgen Q2 Results Top Estimates; To Cut 2,400-2,900 Jobs

(RTTNews) - Amgen Inc. (AMGN) reported net income for the second quarter of $1.55 billion or $2.01 per share, compared to $1.26 billion or $1.65 per share for the year-ago quarter.

Excluding items, adjusted net income for the second quarter was $1.82 billion or $2.37 per share, compared to $1.44 billion or $1.89 per share in the prior year quarter.

Total revenues for the second quarter increased 11% to $5.18 billion from $4.68 billion a year ago.

Analysts polled by Thomson Reuters expected the company to earn $2.07 per share on revenue of $4.90 billion for the second quarter.

The company also announced a restructuring plan to invest in continuing innovation and the launch of its new pipeline molecules, while improving its cost structure.

As a first step, the company said it will reduce staff by 2,400-2,900, beginning later this year and continuing through 2015, predominantly in the U.S. This represents about 12% to 15% of Amgen's global workforce. The company will also close its facilities in the states of Washington and Colorado.

For the full year 2014, the company now expects total revenues to be in the range of $19.5 billion to $19.7 billion and adjusted EPS to be in the range of $8.20 to $8.40. Previously, the company expected total revenues of $19.2 billion to $19.6 billion and adjusted earnings of $7.90 to $8.20 per share.

Analysts currently expect the company to earn $8.09 per share on revenue of $19.41 billion for the full year 2014.