Amgen Turns Profit with Strong Q1 Revenues and EPS Growth

Amgen Inc. highlighted a favorable turnaround with Q1 profits of $1.73B, or $3.20 per share, driven by revenue growth and a positive impact from equity investments. This news comes as the company forecasts robust EPS for fiscal 2025.

Date: 02-05-2025

AI Rating: 7

Overview of Amgen's Q1 Performance
Amgen Inc. reported a net income of $1.73 billion or $3.20 per share for the first quarter of 2025, a significant turnaround from a net loss of $113 million or $0.21 per share last year. This swing to profitability is indicative of the company's improving financial health, driven by higher revenues and an unrealized gain from its equity investment in BeiGene, Ltd.

Earnings Per Share (EPS)
The earnings per share for the quarter exceeded analyst expectations, with actual adjusted EPS reported at $4.90 compared to the expected $4.26. The forecast for fiscal 2025 suggests Amgen expects EPS to be in the range of $12.21 to $13.46, which is stronger than previous forecasts and reveals confidence in ongoing profitability.

Revenue Growth
Revenue for the first quarter saw a healthy climb of 9%, reaching $8.15 billion. This increase was largely thanks to an 11% rise in product sales. Analysts also anticipate total revenues in fiscal 2025 to fall around $35.12 billion, aligning closely with Amgen's expectations of $34.3 billion to $35.7 billion, suggesting stability in revenue streams.

Net Income and Profit Margins
The reported net income demonstrates not only a turnaround but also effective management of operational costs, despite the $800 million impairment charge related to the Otezla intangible asset. This impairment could affect profit margins but the overall financial results reflect competent margin management, especially given the revenue growth.

Market Reaction
Following the earnings release, the stock saw a slight uptick in after-hours trading, indicating positive market sentiment, although it had closed the regular trading session down 2.45%. The combination of a stronger-than-expected balance sheet and guidance could present a favorable outlook for Amgen in the near term.

Stocks: AMGN