We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Friday, shares of therapeutics company Amgen Inc. (AMGN - Free Report) are sliding, down over 10% in afternoon trading after the company reported its third quarter earnings results.
Earnings per share came in at $3.02, beating the Zacks Consensus Estimate of $2.79 and increasing 11% year-over-year.Total revenues gained 2% to $5.81 billion, beating our consensus estimate of $5.74 billion by 1.2%.
However, lower sales of its established product brands like Epogen, Aranesp, Neulasta, Neupogen, and especially Enbrel, have hit shares of AMGN hard. Sales of Enbrel, used to treat moderate to severe rheumatoid arthritis and moderate to severe plaque psoriasis, were flat when compared to the year ago period. And, Amgen said it expects sales of the drug will see only minimal net price growth in 2017.
Amgen has depended on its legacy products for many years now—Enbrel, Neulasta, and the rest of the above-mentioned treatments make up $15 billion of the company’s $22.8 billion total revenue this year—but this reliance is now become a thorn in its side, according to Barron’s, who cite Leerink’s Geoffrey Porges and Bradley Canino. The analysts believe this slowdown in growth will affect AMGN stock, and it “is likely to come under pressure from both negative estimate revisions and multiple compression.”
Looking ahead, Amgen management raised its full-year 2016 earnings range, as well as the lower end of its revenue guidance. The company now expects earnings of $11.40 to $11.55 per share, and revenue of $22.6 billion to $22.8 billion. The Zacks Consensus Estimate for earnings and sales stand at $11.34 per share and $22.74 billion, respectively.
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Amgen (AMGN) Stock Slid Over 10% Today
On Friday, shares of therapeutics company Amgen Inc. (AMGN - Free Report) are sliding, down over 10% in afternoon trading after the company reported its third quarter earnings results.
Earnings per share came in at $3.02, beating the Zacks Consensus Estimate of $2.79 and increasing 11% year-over-year.Total revenues gained 2% to $5.81 billion, beating our consensus estimate of $5.74 billion by 1.2%.
However, lower sales of its established product brands like Epogen, Aranesp, Neulasta, Neupogen, and especially Enbrel, have hit shares of AMGN hard. Sales of Enbrel, used to treat moderate to severe rheumatoid arthritis and moderate to severe plaque psoriasis, were flat when compared to the year ago period. And, Amgen said it expects sales of the drug will see only minimal net price growth in 2017.
Amgen has depended on its legacy products for many years now—Enbrel, Neulasta, and the rest of the above-mentioned treatments make up $15 billion of the company’s $22.8 billion total revenue this year—but this reliance is now become a thorn in its side, according to Barron’s, who cite Leerink’s Geoffrey Porges and Bradley Canino. The analysts believe this slowdown in growth will affect AMGN stock, and it “is likely to come under pressure from both negative estimate revisions and multiple compression.”
Looking ahead, Amgen management raised its full-year 2016 earnings range, as well as the lower end of its revenue guidance. The company now expects earnings of $11.40 to $11.55 per share, and revenue of $22.6 billion to $22.8 billion. The Zacks Consensus Estimate for earnings and sales stand at $11.34 per share and $22.74 billion, respectively.
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>