Uncovering Potential: Amgen's Earnings Preview
Amgen (NASDAQ:AMGN) is set to give its latest quarterly earnings report on Tuesday, 2025-08-05. Here's what investors need to know before the announcement.
Analysts estimate that Amgen will report an earnings per share (EPS) of $5.26.
The announcement from Amgen is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings History Snapshot
During the last quarter, the company reported an EPS beat by $0.60, leading to a 0.9% drop in the share price on the subsequent day.
Here's a look at Amgen's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.3 | 5.08 | 5.11 | 5 |
| EPS Actual | 4.9 | 5.31 | 5.58 | 4.97 |
| Price Change % | -1.0% | 7.000000000000001% | 1.0% | -5.0% |
Amgen Share Price Analysis
Shares of Amgen were trading at $296.88 as of August 01. Over the last 52-week period, shares are down 9.22%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Insights Shared by Analysts on Amgen
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Amgen.
Analysts have given Amgen a total of 8 ratings, with the consensus rating being Neutral. The average one-year price target is $302.62, indicating a potential 1.93% upside.
Analyzing Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Gilead Sciences, Vertex Pharmaceuticals and Regeneron Pharmaceuticals, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Gilead Sciences, with an average 1-year price target of $133.0, suggesting a potential 55.2% downside.
- Analysts currently favor an Neutral trajectory for Vertex Pharmaceuticals, with an average 1-year price target of $482.9, suggesting a potential 62.66% upside.
- Analysts currently favor an Outperform trajectory for Regeneron Pharmaceuticals, with an average 1-year price target of $715.92, suggesting a potential 141.15% upside.
Peer Analysis Summary
Within the peer analysis summary, vital metrics for Gilead Sciences, Vertex Pharmaceuticals and Regeneron Pharmaceuticals are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Amgen | Neutral | 9.43% | $5.18B | 28.63% |
| Gilead Sciences | Buy | -0.28% | $5.13B | 6.83% |
| Vertex Pharmaceuticals | Neutral | 2.96% | $2.41B | 3.93% |
| Regeneron Pharmaceuticals | Outperform | -3.70% | $2.56B | 2.75% |
Key Takeaway:
Amgen ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it ranks second in return on equity. Overall, Amgen is positioned favorably compared to its peers in the analysis.
Unveiling the Story Behind Amgen
Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drugs Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx Pharmaceuticals bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brought several rare-disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.
Understanding the Numbers: Amgen's Finances
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Positive Revenue Trend: Examining Amgen's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.43% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 21.23%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Amgen's ROE excels beyond industry benchmarks, reaching 28.63%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Amgen's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.91%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a high debt-to-equity ratio of 9.24, Amgen faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for Amgen visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
