The world's largest biotech company reported a year-over-year rise in net profit to $1.55 billion, or $2.01 a share, from $1.26 billion, or $1.65 a share. Profit excluding items was $2.37 a share, which beat the consensus estimate of $2.07 a share. Revenue rose 11% to $5.2 billion, which beat analysts' expectations of $4.89 billion.
Strong sales of the rheumatoid arthritis drug Enbrel aided the profit rise, Amgen said in its press release.
Amgen also announced it would trim its work force by 12% to 15% and would close two plants as it tries to restructure and move resources in preparation for the debut of new medicines, which the company hopes will drive future growth.
The stock was up 3.6% to $127.75 at 4:35 p.m.
Separately, TheStreet Ratings team rates AMGEN INC as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMGEN INC (AMGN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."