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Amgen (AMGN) to Report Q2 Earnings: What's in the Cards?
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Amgen, Inc. (AMGN - Free Report) will report second-quarter 2022 results on Aug 4, after-market hours. In the last reported quarter, the company delivered an earnings surprise of 0.71%.
The large biotech’s performance has been strong with earnings beating estimates in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 5.68%, on average.
Amgen’s stock has risen 10% this year so far against a decrease of 19.4% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
In the second quarter, volume growth from Amgen’s key drugs like Prolia, Xgeva, Repatha, Blincyto and Evenity is expected to have driven top-line growth. Improved demand patterns with the impact of the pandemic receding in the United States are expected to have benefited the top line.
However, increasing branded and generic competition for its legacy products like Enbrel, Aranesp, Epogen, Neupogen, Neulasta and Sensipar are likely to have hurt the top line. Negative volume and net price trends are likely to have hurt Enbrel’s sales in the second quarter.
Lower selling prices due to increased discounting and rebates to maintain formulary access in increasingly competitive categories are expected to have hurt sales of almost all drugs in the quarter. Also, increased competitive pressure is likely to have hurt sales of some drugs.
The respective Zacks Consensus Estimate for Prolia, Xgeva, Blincyto, Repatha, Kyprolis and Evenity sales is pegged at $889 million, $531 million, $133 million, $330 million, $300 million and $174 million.
Regarding Otezla, though sales were lower in the first quarter due to wholesalers and specialty pharmacies reducing inventory levels and price declines, volume growth is expected to have been better in the second quarter while price erosion is expected to have been lower. The Zacks Consensus Estimate for Otezla is $590 million.
Second-quarter sales of Amgen’s newly approved KRAS inhibitor, Lumakras, are likely to have been higher than $62 million recorded in the first quarter. Following it launch, Lumakras, a first-in-class lung cancer treatment, is off to an excellent start while its label expansion studies, which have the potential to significantly expand the currently addressable patient population, have been progressing rapidly. The Zacks Consensus Estimate for Lumakras is $73 million.
For biosimilars, volume decline and price erosion due to increased competition are expected to have hurt the top line.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Amgen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Amgen’s Earnings ESP is -0.97% as the Zacks Consensus Estimate stands at $4.40 per share while the Most Accurate Estimate is $4.36 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Amgen has a Zacks Rank #3.
Stocks to Consider
Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
Horizon Therapeutics’ stock has declined 23.0% this year so far. Horizon Therapeutics topped earnings estimates in all the last four quarters. HZNP has a four-quarter earnings surprise of 29.80%, on average. Horizon Therapeutics is scheduled to release its second-quarter 2022 results on Aug 3.
Blueprint Medicines Corporation (BPMC - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
Blueprint Medicines’ missed earnings expectations in three of the trailing four quarters while delivering in-line results in one. It delivered a four-quarter negative earnings surprise of 15.72%, on average.
Blueprint Medicines is scheduled to release its second-quarter 2022 results on Aug 2. The stock is down 52.4% this year so far.
Amarin’s stock has declined 60.6% this year so far. Amarin topped earnings estimates in three of the last four quarters. AMRN has a four-quarter earnings surprise of 115.0%, on average. Amarin is scheduled to release its second-quarter 2022 results on Aug 3.
Image: Shutterstock
Amgen (AMGN) to Report Q2 Earnings: What's in the Cards?
Amgen, Inc. (AMGN - Free Report) will report second-quarter 2022 results on Aug 4, after-market hours. In the last reported quarter, the company delivered an earnings surprise of 0.71%.
The large biotech’s performance has been strong with earnings beating estimates in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 5.68%, on average.
Amgen Inc. Price and EPS Surprise
Amgen Inc. price-eps-surprise | Amgen Inc. Quote
Amgen’s stock has risen 10% this year so far against a decrease of 19.4% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
In the second quarter, volume growth from Amgen’s key drugs like Prolia, Xgeva, Repatha, Blincyto and Evenity is expected to have driven top-line growth. Improved demand patterns with the impact of the pandemic receding in the United States are expected to have benefited the top line.
However, increasing branded and generic competition for its legacy products like Enbrel, Aranesp, Epogen, Neupogen, Neulasta and Sensipar are likely to have hurt the top line. Negative volume and net price trends are likely to have hurt Enbrel’s sales in the second quarter.
Lower selling prices due to increased discounting and rebates to maintain formulary access in increasingly competitive categories are expected to have hurt sales of almost all drugs in the quarter. Also, increased competitive pressure is likely to have hurt sales of some drugs.
The respective Zacks Consensus Estimate for Prolia, Xgeva, Blincyto, Repatha, Kyprolis and Evenity sales is pegged at $889 million, $531 million, $133 million, $330 million, $300 million and $174 million.
Regarding Otezla, though sales were lower in the first quarter due to wholesalers and specialty pharmacies reducing inventory levels and price declines, volume growth is expected to have been better in the second quarter while price erosion is expected to have been lower. The Zacks Consensus Estimate for Otezla is $590 million.
Second-quarter sales of Amgen’s newly approved KRAS inhibitor, Lumakras, are likely to have been higher than $62 million recorded in the first quarter. Following it launch, Lumakras, a first-in-class lung cancer treatment, is off to an excellent start while its label expansion studies, which have the potential to significantly expand the currently addressable patient population, have been progressing rapidly. The Zacks Consensus Estimate for Lumakras is $73 million.
For biosimilars, volume decline and price erosion due to increased competition are expected to have hurt the top line.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Amgen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Amgen’s Earnings ESP is -0.97% as the Zacks Consensus Estimate stands at $4.40 per share while the Most Accurate Estimate is $4.36 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Amgen has a Zacks Rank #3.
Stocks to Consider
Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
Horizon Therapeutics Public Limited Company has an Earnings ESP of +4.97% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horizon Therapeutics’ stock has declined 23.0% this year so far. Horizon Therapeutics topped earnings estimates in all the last four quarters. HZNP has a four-quarter earnings surprise of 29.80%, on average. Horizon Therapeutics is scheduled to release its second-quarter 2022 results on Aug 3.
Blueprint Medicines Corporation (BPMC - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
Blueprint Medicines’ missed earnings expectations in three of the trailing four quarters while delivering in-line results in one. It delivered a four-quarter negative earnings surprise of 15.72%, on average.
Blueprint Medicines is scheduled to release its second-quarter 2022 results on Aug 2. The stock is down 52.4% this year so far.
Amarin Corporation (AMRN - Free Report) has an Earnings ESP of +13.64% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amarin’s stock has declined 60.6% this year so far. Amarin topped earnings estimates in three of the last four quarters. AMRN has a four-quarter earnings surprise of 115.0%, on average. Amarin is scheduled to release its second-quarter 2022 results on Aug 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.