Amgen Earnings Preview: What to Expect

Amgen Inc. (AMGN), headquartered in Thousand Oaks, California, discovers, develops, manufactures, and delivers human therapeutics. With a market cap of $174.4 billion, the company focuses on human therapeutics and concentrates on innovating novel medicines based on cellular and molecular biology. The drug manufacturing giant is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Wednesday, Oct. 30. 

Ahead of the event, analysts expect AMGN to report a profit of $5.10 per share on a diluted basis, up 2.8% from $4.96 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect AMGN to report EPS of $19.44, up 4.2% from $18.65 in fiscal 2023. Its EPS is expected to rise 6.1% year over year to $20.63 in fiscal 2025. 

AMGN stock has underperformed the S&P 500’s ($SPX) 33.6% gains over the past 52 weeks, with shares up 12.1% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 16.9% gains over the same time frame.

AMGN's recent top-line data on two autoimmune disease drugs, Uplizna and rocatinlimab, fell short of expectations on Wall Street. While the MINT study showed promising results in Myasthenia Gravis, it was deemed less compelling compared to competitors' drugs like argenx's Vyvgart and UCB's Rystiggo. Similarly, the HORIZON study results for rocatinlimab were not considered impressive in comparison to Dupixent, a leading immunology drug. Moreover, analysts were underwhelmed by AMGN's performance in the autoimmune disease space. 

On Oct. 14, AMGN shares closed down nearly 1% after Truist Securities downgraded the stock to “Hold” from “Buy,” stating that the upcoming obesity data was already priced into the stock.

On Aug. 6, AMGN reported its Q2 results and its shares closed down more than 5% in the following trading session. Its adjusted EPS of $4.97 fell short of the consensus of $4.98. The company’s revenue stood at $8.4 billion, up 20.1% year over year. 

Analysts’ consensus opinion on AMGN stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 12 give a “Hold” rating, and two recommend a “Strong Sell.” AMGN’s average analyst price target is $332.91, indicating a potential upside of 3.5% from the current levels.

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.