- Amgen’s adjusted EPS for 1Q beat estimates, standing at $3.96 as opposed to $3.98 previously and higher than the estimated $3.94.
- The company’s revenue showed an increase of 22% year-on-year, reaching $7.45 billion, slightly above the estiamte of $7.43 billion.
- Product sales also increased by 22% year-on-year, reaching $7.12 billion, which was slightly above the estimate of $7.11 billion.
- Some specific products also saw substantial increases in revenue: Repatha revenue at $517 million (+33% year-on-year) beating the estimate of $458.7 million; Prolia reaching $999 million revenue (+7.8% year-on-year).
- Evenity revenue increased by 35% year-on-year to $342 million, outperforming the estimated $332.5 million; while Blincyto revenue rose by 26% to $244 million.
- On the downside, Enbrel revenue saw a decrease of 2.1% year-on-year to $567 million, falling short of the estimated $592.4 million.
- Amgen’s adjusted operating expenses for 1Q were $4.37 billion, a significant increase of 33% year-on-year, surpassing the estimated $3.93 billion.
- The adjusted operating margin of 43.2% was also lower compared to 48.3% in the previous year.
- For the year ahead, Amgen foresees an adjusted EPS of $19.00 to $20.20, which is slightly lower than the previous forecast of $18.90 to $20.30. The estimated EPS stands at $19.48.
- Expected capital expenditure is still around $1.1 billion, with share buyback plans up to $500 million.
Amgen Inc on Smartkarma
Analyst coverage of Amgen Inc on Smartkarma, an independent investment research network, reveals a positive outlook on the biotechnology company’s performance. Baptista Research‘s analysis, “Amgen Inc: An Analysis Of The Pipeline Progress and Development! – Major Drivers,” highlights strategic moves and positive outcomes discussed in the Fourth Quarter 2023 Financial Results Conference Call. Key factors contributing to Amgen’s growth include the acquisition of Horizon Therapeutics and record annual sales for 18 medicines. Baptista Research evaluates these factors to project the company’s future price, utilizing a Discounted Cash Flow methodology.
Furthermore, Baptista Research‘s report, “Amgen Inc.: Expansion Of Oncology Research & Other Major Drivers,” notes a mixed set of results for the previous quarter. Despite revenues falling below analyst expectations, Amgen managed an earnings beat. The company saw significant sales for key brands and notable volume growth across various portfolios, including general medicine, inflammation, and hematology/oncology. Prolia, in the bone health sector, reported a 14% year-over-year sales increase, driven by volume growth and higher net selling prices. These analyses provide insights into Amgen’s performance and potential future developments for investors to consider.
A look at Amgen Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Amgen Inc. is positioned with a solid dividend score of 4, reflecting the company’s commitment to rewarding shareholders. With a growth score of 3, it indicates a moderate potential for long-term expansion in the biotechnology sector. The company also shows decent momentum with a score of 3, suggesting a steady pace in its market performance. However, the value and resilience scores stand at 2, indicating room for improvement in these areas. Despite this, Amgen Inc. remains an independent biotechnology company known for its focus on human therapeutics and innovative medicines derived from cutting-edge biological research.
Looking ahead, Amgen Inc. appears to have a promising long-term outlook supported by its strong dividend payout and growth potential. While there may be areas to enhance in terms of value and resilience, the company’s commitment to developing medicines for severe illnesses positions it well in the evolving healthcare landscape. Investors may be encouraged by the company’s solid momentum and strategic focus, making Amgen Inc. a notable player to watch in the biotechnology industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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