Amgen Increases Sales but Misses Estimates on Earnings

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Amgen (NAS: AMGN) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Amgen beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and GAAP earnings per share was unchanged.

Margins contracted across the board.

Revenue details
Amgen notched revenue of $3.97 billion. The 20 analysts polled by S&P Capital IQ hoped for revenue of $3.92 billion. Sales were 3.4% higher than the prior-year quarter's $3.84 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.21. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.22 per share on the same basis. GAAP EPS of $1.08 for Q4 were 0.2% higher than the prior-year quarter's $1.08 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 83.5%, 160 basis points worse than the prior-year quarter. Operating margin was 29.2%, 170 basis points worse than the prior-year quarter. Net margin was 23.5%, 310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.95 billion. On the bottom line, the average EPS estimate is $1.46.

Next year's average estimate for revenue is $16.20 billion. The average EPS estimate is $6.02.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,955 members out of 2,122 rating the stock outperform, and 167 members rating it underperform. Among 573 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 549 give Amgen a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amgen is outperform, with an average price target of $65.26.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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