After six consecutive earnings beats, Amgen (NASDAQ:AMGN) is set to report its fourth-quarter 2022 results on January 31. The quarterly results are likely to have been driven by the company’s solid portfolio of drugs. However, some headwinds are expected to have pressed the performance.
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The Street expects AMGN to post adjusted earnings of $4.09 per share on revenues of $6.76 billion. In contrast, the company reported adjusted earnings of $4.36 per share on revenues of $6.85 billion in Q4FY21.
Let’s Take a Look at How Q4 Might Have Played Out
Sales of critical drugs in Amgen’s portfolio, like Prolia, Repatha, Otezla, Evenity, and more, are expected to have continued to increase in volume, driving top-line growth in Q4. However, many of its products, including Enbrel, Aranesp, Epogen, Neulasta, and Neupogen, are facing strong competition, which could have been an overhang in the form of pricing pressure.
The fourth quarter will likely have seen positive results from its partnership with AstraZeneca (NASDAQ:AZN). In September last year, Tezpire, an asthma drug created by Amgen and AstraZeneca, received approval to be marketed in Japan and Europe. This is expected to have driven sales for the drug in Q4. Since both the partnering drugmakers share the profits equally, this is likely to have been a positive for Amgen’s top line in the quarter.
Nonetheless, currency headwinds are likely to have continued to loom over the sales of some drugs and biosimilar products in Q4.
Is AMGN a Buy or Sell?
Ahead of the earnings report, AMGN stock has a Hold consensus rating on Wall Street, based on four Buys, seven Holds, and four Sells. The average price target of $265.67 indicates an upside of 4.74% over the course of the year.
