AMGEN (AMGN) Stock Climbs On Earnings



AMGEN stock climbed in after hours trading yesterday following an earnings report that beat expectations. So, today we’ll take a look at the earnings report, talk about what we’re seeing in the market today, and discuss what we can expect from the stock moving forward. So, let’s get right to it!

AMGN Beats Earnings Expectations

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If you’d like complete details of the AMGEN earnings report, click here. Nonetheless, here are the highlights…

  • Earnings Per Share – AMGN reported earnings per share at $2.48; which represents a 32.6% year over year increase. The number also beat analyst expectations of $2.10 by $0.38.
  • Revenue – AMGEN INC also reported that year over year, their revenue increased by 11%; coming in at $5 billion for the quarter and beating analyst expectations of $4.9 billion by around $100 million.
  • Product Sales – Year over year, total product sales saw a 12% increase; with Enbrel leading the charge with a 12% increase, totaling $1.12 billion in sales.
  • Full Year Earnings Guidance – Because of the overwhelmingly successful quarter, full year guidance has increased as well. Full year earnings should be between $9.35 and $9.65 per share and revenue should be between $20.9 billion and $21.3 billion.

What We’re Seeing From AMGEN In The Market Today

While the stock did exceptionally well in after hours trading, today doesn’t seem to be following the same trend; but don’t worry, it’s healthy. In morning trading, we saw a large sell off, driving the price of the stock into the red. However, we’ve seen slow and steady growth since; bringing AMGN back into gains for the day. Currently (1:14), AMGN is trading at $168.80 per share after a gain of 0.20% so far today.

What We Can Expect Moving Forward

There’s no doubt that sell offs like we saw this morning can be scary. However, in this case, it was healthy. The reality is that after hours trading sent the stock too high. So, investors got spooked and overreacted; driving the price down. However, the movement we’re seeing right now is slow, steady, and most importantly, sustainable. With the positive earnings news, along with sustainable trends in the market, I’m expecting to see long term gains from AMGN moving forward.

What Do You Think?

Where do you think AMGN is headed and why? Let us know in the comments below!


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