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Amgen's Earnings Outlook

Benzinga Insights
·2 min read

Amgen (NASDAQ: AMGN) releases its next round of earnings this Wednesday, October 28. Here is Benzinga's essential guide to Amgen's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Amgen reporting earnings of $3.8 per share on revenue of $6.35 billion. In the same quarter last year, Amgen reported EPS of $3.66 on revenue of $5.74 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

View more earnings on AMGN

If the company were to match the consensus estimate when it reports Wednesday, earnings would be up 3.83%. Revenue would be up 10.69% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter

Q2 2020

Q1 2020

Q4 2020

Q3 2019

EPS Estimate

3.84

3.76

3.52

3.52

EPS Actual

4.25

4.17

3.64

3.66

Revenue Estimate

6.18 B

5.98 B

6.09 B

5.64 B

Revenue Actual

6.21 B

6.16 B

6.20 B

5.74 B

Stock Performance

Shares of Amgen were trading at $224.89 as of October 26. Over the last 52-week period, shares are up 6.71%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Amgen is scheduled to hold the call at 17:00:00 ET and can be accessed here.

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