Amgen Pressured on Outlook

The company says existing 2005 estimates are at the high end of its range.
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(AMGN) - Get Report

was under pressure Tuesday after telling analysts it expects to earn $2.71 to $2.85 a share on revenue of $11 billion to $11.5 billion in 2005.

Analysts surveyed by Thomson One Analytics were forecasting earnings of $2.83 a share on revenue of $11.75 billion for the full year. The stock was recently down $1.71, or 2.8%, to $58.40.

The company didn't offer specific guidance for 2004, during which analysts expect it to earn $2.38 a share on revenue of $10.13 billion.

Longer term, Amgen expects product revenue to rise at a compound annual rate of 30% to 32% through 2005, with adjusted earnings rising 25% to 27% over the same period. The growth rates assume no acquisitions or product in-licensing and that the company's "present understanding of Medicare reimbursement changes remains limited."