Thousand Oaks, California-based Amgen Inc. (AMGN) discovers, develops, and manufactures innovative medicines aimed at improving the lives of millions. With a market cap of $142 billion, Amgen has been a pioneer in the biotechnology industry for over 40 years. Its portfolio includes treatments for cancer, heart disease, osteoporosis, inflammatory diseases, and rare conditions.
The drug manufacturer is expected to announce its fourth-quarter results on Tuesday, Feb. 4. Ahead of the event, analysts expect AMGN to report a non-GAAP profit of $5.02 per share, up 6.6% from $4.71 per share reported in the year-ago quarter. The company has a robust earnings surprise history. It has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Amgen’s adjusted EPS for the last reported quarter surged 12.5% year-over-year to $5.58, exceeding analysts’ estimates by 9.2%.
For the full fiscal 2024, Amgen is expected to deliver an adjusted EPS of $19.57, up 4.9% from $18.65 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow nearly 4% year-over-year to $20.35.
AMGN stock has plummeted 15% over the past 52 weeks, substantially underperforming the Healthcare Select Sector SPDR Fund’s (XLV) marginal gains and the S&P 500 Index’s ($SPX) 24.4% surge during the same time frame.
Amgen stock prices rose nearly 1.5% in the trading session following the release of its mixed Q3 results on Oct. 30. Driven by a significant surge in volumes and the acquisition of Horizon Therapeutics, Amgen’s total revenues surged 23.2% year-over-year to $8.5 billion but missed Wall Street’s expectations by a small margin.
Meanwhile, due to a drop in net selling price and a massive 32.2% increase in total operating expenses to $6.5 billion Amgen’s profitability took a sharp hit. Its non-GAAP adjusted net margin contracted 307-basis points compared to the year-ago quarter to 35.6%. While its adjusted net income grew 13.4% year-over-year to $3 billion.
The consensus opinion on AMGN stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 30 analysts covering the stock, 14 recommend “Strong Buy,” one advises “Moderate Buy,” 12 suggest “Hold,” one advocate “Moderate Sell,” and two give a “Strong Sell” rating. Its mean price target of $323.16 indicates a staggering 23.2% upside potential from current price levels.
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