Biotechnology firm Amgen has reported  a 3% decline in its second-quarter profit as higher operating expenses offset increased product sales. However, adjusted earnings per share topped Street projections. Further, the company said it now sees the upper end of the forecast range for fiscal 2011 earnings and sales. The company also announced first quarterly cash dividend.

For the second quarter, net income was $1.17 billion, lower than prior year's $1.20 billion. However, earnings per share remained unchanged at $1.25, with lower share count.

The latest quarter results included certain charges totaling $111 million, comprising stock option expense, loss accruals for certain facility operating leases and incremental costs, among other things, lower than last year's charges of $124 million.

Adjusted earnings per share including stock option expenses increased to $1.35 from last year's $1.34.

Meanwhile, adjusted earnings, which excluded all items, fell 3% to $1.28 billion, and earnings per share declined 1% to $1.37 from $1.38 a year ago.
On average, 23 analysts polled by Thomson Reuters expected earnings of $1.28 per share for the quarter. Analysts' estimates typically exclude one-time items.

However, total revenue increased 4% to $3.96 billion from $3.80 billion last year, beating Wall Street analysts' consensus estimate of $3.78 billion.
For the quarter product sales grew 8% with improved performance in most of its drugs, while sales declined for anemia drugs Aranesp and Epogen reflecting decline in unit demand.

The company recorded a 26% rise in research and development expenses due to costs associated with late stage clinical programs, and a 15% rise in selling, general & administrative expenses mainly due to the U.S. Healthcare Reform Federal Excise Fee.

Further, Amgen announced its first quarterly cash dividend of $0.28 per share, to be paid on September 8 to all stockholders of record on August 18.
Looking ahead, Chairman and Chief Executive Officer Kevin Sharer said, "Our business has momentum and we expect to be at the upper end of our revenue and EPS guidance ranges for the year."

Amgen now expects 2011 adjusted earnings to be at the upper end of the previous guidance range of $5.00 to $5.20 per share. Analysts project earnings per share of $5.15 for the year.

The company also sees revenues at the upper end of the guidance range of $15.1 billion to $15.5 billion, whereas analysts anticipate 2011 revenues of $15.25 billion.

While reaffirming its fiscal 2011 forecast in late June, the company had also backed its 2015 guidance, which called for adjusted earnings of $7.25 to $8.60 per share and revenue of $16 billion to $18 billion.