Amgen’s Stock Performance and Estimates after Q3 2018

Amgen

Amgen (AMGN) is a biotechnology company that focuses on discovering, developing, and delivering drugs in therapeutic areas such as cardiovascular, neuroscience, and oncology. The chart below compares Amgen’s EPS and revenues since the first quarter of 2017, as well as its third-quarter estimates.

Amgen’s Stock Performance and Estimates after Q3 2018

Stock performance and recommendations

Amgen’s (AMGN) stock price has risen ~12.1% in the third quarter. Its stock price increased ~19.5% year-to-date on October 2.

Analysts expect Amgen’s stock price to fall ~1.4% over the next 12 months. Analysts’ recommendations show a 12-month target price of $205.00 per share, compared to its October 1 price of $206.91 per share.

Twenty-four analysts are tracking Amgen stock. Five analysts recommend a “strong buy,” six analysts recommend a “buy,” and 13 analysts recommend a “hold.” There were no “sell” recommendations. Amgen’s consensus rating stands at 2.33, which represents a “strong buy” for value investors.

Analysts’ revenue estimates

Amgen’s (AMGN) revenues are driven by the strong performance of some of its key drugs—Neulasta, Prolia, Xgeva, and Kyprolis. The declining sales of Enbrel and Sensipar/Mimpara, as well as changes in foreign exchange, have impacted Amgen’s overall growth.

Analysts expect Amgen to report third-quarter EPS of $3.43 and revenues of $5.76 billion. This represents an ~0.2% decline in revenues, compared to $5.77 billion in the third quarter of 2017.

The iShares US Healthcare ETF (IYH) holds 3.3% of its total investments in Amgen (AMGN), 2.5% in Eli Lilly & Co. (LLY), 4.7% in Merck & Co. (MRK), and 6.4% in Pfizer (PFE).