Amgen profit up 1% as spending soars
Amgen said fourth-quarter profit rose 1 percent as research spending climbed faster than sales of its anemia and cancer drugs. Net income climbed to...
Amgen said fourth-quarter profit rose 1 percent as research spending climbed faster than sales of its anemia and cancer drugs.
Net income climbed to $833 million, or 71 cents a share, from $824 million, or 66 cents, a year earlier, the world's largest biotechnology company reported. Profit excluding certain items was 90 cents a share, missing the 93-cent average estimate of 24 analysts surveyed.
"A lot of things were surprising: They missed on earnings per share, they had surging R&D expenses, and there were a lot of setbacks in the pipeline," said Geoffrey Porges, an analyst with Sanford Bernstein & Co. "People will be very concerned when they read the fine print."
Sales of Enbrel, Amgen's drug for rheumatoid arthritis and other autoimmune diseases, rose 18 percent to $792 million from a year earlier. The company has said it isn't satisfied with Enbrel's sales among patients with moderate to severe psoriasis and plans a televised advertising campaign to boost sales.
Amgen shares fell 29 cents to $74.85 Thursday.
Wand-wielding Wii an earnings boon
Booming year-end sales of the wand-wielding Wii game console sent profit at Nintendo soaring 43 percent for the nine months ended December, the Japanese manufacturer of Pokémon and Super Mario games said Thursday.
Nintendo, which also makes GameBoy Advance and Nintendo DS handheld machines, recorded group net profit of $1.1 billion in the first nine months of the fiscal year, up dramatically from $756 million the same period a year earlier.
The company did not break down quarterly numbers.
Sales soared 73 percent to $5.9 billion during the April-December period from $3.3 billion the previous year, Nintendo said. The Kyoto-based company has its U.S. headquarters in Redmond.
Nintendo shares, which have more than doubled over the past year, closed up 1.5 percent in Tokyo before earnings were announced.
Net income up; growth on target
AT&T's fourth-quarter earnings rose 17 percent, the telecommunications company reported Thursday, reaffirming its growth target for 2007 and raising projections for the cost savings expected from the just-completed buyout of BellSouth.
For the three months ended Dec. 31, the nation's largest provider of local phone, cellular and DSL Internet services posted net income of $1.94 billion, or 50 cents a share. In the same quarter a year earlier, earnings totaled $1.66 billion, or 46 cents per share.
Fourth-quarter revenues reached $15.9 billion, a 23 percent increase from $12.9 billion in the final months of 2005.
The AT&T results included only negligible amounts of revenue and profit from BellSouth, as the $86 billion acquisition closed only two days before the end of the quarter.
The deal gave AT&T full ownership of Cingular Wireless and extended the company's local phone territory across the Southeast. Cingular was still 40 percent owned by BellSouth for most of the fourth quarter, so AT&T's revenue figure only included two days worth of sales by the cellphone venture.
AT&T's share price jumped to a 52-week high early in the day before retreating to a 16-cent gain at $36.79.
Military spending bolsters results
Defense contractor Lockheed Martin posted higher fourth-quarter earnings Thursday as government spending in areas like military hardware and information and technology remained strong.
For the fourth quarter of 2006, Lockheed's net earnings rose 28 percent to $729 million, or $1.68 per share, compared with $568 million, or $1.29 per share, in the year-ago period.
Analysts were looking for more, but Lockheed shares still managed to gain 30 cents to $97.44.
Compiled from Bloomberg News and The Associated Press