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Amgen Beats Consensus, Raises Earnings Guidance, But Is It Sustainable?

 
• By Mandy Jackson

Amgen's second quarter beat consensus estimates, but with only a $100m increase in sales and few major growth drivers expected in the near term, earnings growth may not last.

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Amgen Inc.'s second quarter revenue of $5.81bn and non-GAAP earnings per share (EPS) of $3.27 beat consensus estimates, but revised financial guidance for the full year painted a mixed picture, calling into question the sustainability of the company's growth.

The second quarter totals handily beat consensus of $5.67bn in revenue and $3.11 in non-GAAP EPS, but investors still sent Amgen's stock down 2.4% in after-hours trading to $176.60 on July 25 following the company's conference call. The sentiment reflected a quarterly financial report that didn't promise any major growth catalysts in the near term to make up for blockbuster products that are losing momentum. Amgen raised its 2017 EPS guidance to a range of $12.15 to $12

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