Amgen Surpasses EPS and Revenue Projections in Q4 2024

Biotech powerhouse Amgen exceeded expectations with a Q4 EPS of $5.31 and revenue of $9.1 billion, indicating strong financial health. The company showcases significant growth, which could positively influence stock prices moving forward.

Date: 05-02-2025

AI Rating: 7

Quarterly Performance Highlights

Amgen's fourth-quarter performance has been highlighted by adjusted earnings per share (EPS) of $5.31, surpassing analysts' estimates of $5.08. This represents a 13% increase year-on-year from Q4 2023, where EPS was $4.71. Additionally, Amgen reported impressive revenue of $9.1 billion, exceeding the expected $8.88 billion and showing an 11% year-over-year growth from $8.2 billion in Q4 2023.

Moreover, the company's operating margin improved to 26.5%, marking an increase of 10.3 percentage points year-over-year, indicative of enhanced operational efficiencies. The significant rise in free cash flow to $4.4 billion from just $0.3 billion in the previous year (a remarkable 1,367% increase) showcases Amgen's strong cash generation capabilities.

Strategic Growth and Acquisitions

Amgen's strategic acquisition of Horizon Therapeutics has not only diversified its portfolio but also strengthened its position in the rare disease market. Noteworthy sales achievements for products like Repatha, which grew by 45% YOY to $606 million, and Tepezza, generating $460 million, further underline Amgen's effectiveness in seizing growth opportunities.

Despite facing biosimilar competition that has impacted legacy products, like Neulasta and Enbrel, Amgen's decision to launch its own biosimilars aims to mitigate revenue loss in these drug categories. These strategic moves indicate Amgen's proactive approach in adapting to competitive pressures while focusing on its core strengths.

Future Outlook

Looking ahead, Amgen's guidance for 2025 projects revenues between $34.3 billion and $35.7 billion, alongside an adjusted EPS forecast of $20 to $21.20. These estimates portray confidence in sustained financial performance despite expected market challenges. Furthermore, Amgen's ongoing development in emerging therapeutic areas positions it well for continued relevance and leadership in biotech.

Overall, Amgen's positive quarterly results, robust cash flow, and strategic growth initiatives suggest a favorable trajectory for its stock performance in the near future.

Stocks: AMGN