Shares of Amgen (AMGN) fell in after-hours trading after the biotechnology company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at $5.31, which beat analysts’ consensus estimate of $5.08 per share. In addition, sales increased by 11% year-over-year, with revenue hitting $9.1 billion. This beat analysts’ expectations by $230 million.
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The sales growth was mainly due to a 14% rise in sales volume. When excluding the sales from the recent Horizon Therapeutics acquisition, product sales still grew by 10%, thanks to a 15% volume increase. Interestingly, 10 of Amgen’s products showed impressive double-digit sales growth in the fourth quarter. Some notable performers included Repatha, BLINCYTO, TEZSPIRE, EVENITY, and TAVNEOS.
Furthermore, the company’s rare disease products brought in $1.2 billion in sales thanks to innovative medicines like TEPEZZA, KRYSTEXXA, UPLIZNA, and TAVNEOS. It is worth noting that these treatments are the first of their kind and are still in the early stages of their product lifecycle.
Outlook for 2025
Looking forward, management has provided the following guidance for Fiscal Year 2025:
- Revenue between $34.3 billion and $35.7 billion versus estimates of $34.53 billion
- Non-GAAP EPS of $20.00 to $21.20 compared to expectations of $20.82
- $2.3 billion in capital expenditures
- Up to $500 million in buybacks
As we can see, the EPS guidance missed expectations at the midpoint of the range at $20.60. This is likely the reason why shares fell despite beating on the other metrics.
Is AMGN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMGN stock based on 10 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 8% decline in its share price over the past year, the average AMGN price target of $334.07 per share implies 15.6% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
