Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Amgen, Inc. (AMGN): Can Earnings Keep It Soaring?

These 3 Stocks Could be Tomorrow's High-YieldersOn Tuesday, Amgen, Inc. (NASDAQ:AMGN) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Amgen, Inc. (NASDAQ:AMGN) has a strong reputation as a giant in the biotech field, having been a pioneer in the industry. Yet the company hasn’t stopped striving for further growth as it pushes its efforts into promising new corners of the biologics market. Let’s take an early look at what’s been happening with Amgen, Inc. (NASDAQ:AMGN) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Amgen

Analyst EPS Estimate $1.84
Change From Year-Ago EPS 14.3%
Revenue Estimate $4.37 billion
Change From Year-Ago Revenue 8%
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

Can Amgen keep impressing Wall Street this quarter?
In recent months, analysts have only gotten more enthusiastic about Amgen’s earnings prospects. They’ve raised their estimates for the just-ended quarter by $0.14 per share, with even more substantial boosts for both full-year 2013 and 2014 expectations. Investors have jumped on the bandwagon, sending shares soaring by more than 30% since mid-January.

Amgen, Inc. (NASDAQ:AMGN) has a huge presence in the biotech industry. Its Neulasta/Neupogen treatment for patients undergoing chemotherapy brings in the most revenue of any drug it sells, with $1.3 billion in worldwide sales just in the fourth-quarter of 2012 alone. Yet that dependence has raised patent-cliff concerns, as Neupogen will lose its exclusivity at the end of this year. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has already made an agreement with Amgen to sell a biosimilar version of Neupogen beginning in November, and future efforts from other companies will inevitably bring sales down sharply next year and beyond.

To replace that lost revenue, Amgen has plenty of new prospects in the fire, with a particularly large stable of biologics in late-stage phase 3 trials. Rival Celgene Corporation (NASDAQ:CELG) arguably has a slightly better pipeline in that more of its trial results come in during 2013, but Amgen, Inc. (NASDAQ:AMGN) expects to get several sets of results this year and next, which could lead to an even larger stable of products for the company.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...