Amgen's Q3 Shows Strong EPS and Revenue Growth Amid Challenges

Amgen Inc. demonstrates solid earnings growth. The biotech giant reported Q3 adjusted EPS of $5.58 and a 23% revenue boost, raising its 2024 revenue guidance. However, shares have struggled compared to the broader market, prompting a cautious outlook from analysts.

Date: 04-02-2025

AI Rating: 7

Earnings Per Share (EPS): Amgen reported an adjusted EPS of $5.58 for Q3, which was stronger than expected. Furthermore, analysts anticipate the EPS for fiscal year 2024 to show growth of 4.9% year-over-year, reaching $19.56. This indicates a positive outlook on profitability for the company.

Revenue Growth: The company achieved a revenue increase of 23% year-over-year, totaling $8.5 billion, driven by robust sales of key drugs such as Repatha and Blincyto. This strong revenue growth reflects positively on the company's market position and business model, boosting investor sentiment.

Despite the positive earnings report, Amgen's stock has underperformed relative to the broader market and its industry peers. Over the past 52 weeks, the company's shares decreased by 10.7%, contrasting sharply with the S&P 500's gain of 20.9%. However, its year-to-date performance has improved, with a rise of 10.8% compared to the S&P 500's modest gain of 1.9%. This mixed performance could create volatility in stock prices.

Analyst sentiment remains cautious yet optimistic, with a consensus rating of “Moderate Buy.” The presence of strong buy ratings as well as holds and sells suggest a divided outlook among analysts which could further impact stock performance moving forward.

Amgen's continued focus on innovation and recent positive adjustments to its revenue projections indicate resilience in changing market conditions. Nonetheless, its shares still trading below the average price target adds a layer of uncertainty for investors. Overall, while the company's recent performance is strong, external pressures, including sector challenges and comparisons to peers, may affect future price movements.

Stocks: AMGN