Amgen (AMGN) reported impressive second-quarter results but lowered its GAAP EPS guidance for the year. Total revenue was up 5% year-over-year to $6.5 billion, beating consensus estimates of $6.43 billion. The increase can be attributed to higher unit demand, partly mitigated by lower net selling price.
Propelled by top-line growth, the biotechnology company reported a 4% year-over-year increase in earnings per share, which came in at $4.38, easily beating consensus estimates of $4.06 a share. (See Amgen stock charts on TipRanks)
“As we look to the balance of the year, we are excited to be launching LUMAKRAS, a first-in-class lung cancer treatment, and advancing a robust pipeline of potential new medicines to meet the demands of patients around the world,” said Amgen CEO Robert A. Bradway.
Notably, Amgen is registering a significant increase in the number of patient visits and lab test procedure trends. However, they remain below pre-COVID-19 levels.
Amgen has reiterated its full-year guidance and expects revenues to range from $25.8 billion to $26.6 billion. Non-GAAP earnings are forecasted to range from $16 to $17 a share.
In response to the earnings release, Piper Sandler analyst Christopher Raymond reiterated a Buy rating on the stock with a $255 price target, implying 11.69% upside potential to current levels.
According to Raymond, the Q2 results were good enough to avoid a massive sell-off, as was the case for the previous quarter.
Consensus among analysts is that AMGN is a Moderate Buy based on 6 Buys, 6 Holds, and 1 Sell. The average Amgen price target of $227.09 implies that shares are fully valued at current levels.
AMGN scores a 7 out of 10 from TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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