Amgen’s Third-Quarter Earnings: Analysts’ Estimates

Amgen’s third-quarter estimates

Amgen (AMGN) is one of the leading pharmaceutical companies. Amgen is scheduled to release its third-quarter earnings on October 30. Wall Street analysts expect the EPS to be $3.45 on revenues of $5.77 billion during the third quarter.

Amgen’s Third-Quarter Earnings: Analysts’ Estimates

The above chart compares the company’s EPS and revenues since the first quarter of 2017 with the third-quarter estimates.

Revenue estimates 

Amgen is expected to report nearly flat revenues at $5.769 billion during the third quarter—compared to its revenues of $5.773 billion during the third quarter of 2017.

Strong drug sales including Kyprolis, Prolia, Sensipar/Mimpara, Xgeva, and other products will likely drive Amgen’s revenue growth. Lower sales of Enbrel, Epogen, Aranesp, Neupogen, and Neulasta will likely offset the growth during the third quarter.

New products are expected to report double-digit growth during the quarter.

Profitability estimates

Analysts expect Amgen’s gross profit margin to fall to 85.7% during the third quarter—compared to the gross profit margin of 87.3% during the third quarter of 2017. The EBITDA margin is expected to fall to 55.9% during the third quarter—compared to 60.6% during the third quarter of 2017. The EBITDA margin is expected to fall due to higher selling, general, and administrative expenses and higher research and development expenses during the quarter. The net adjusted income is expected to fall to ~$2.24 billion during the third quarter—compared to $2.40 billion during the third quarter of 2017.

Notably, the iShares NASDAQ Biotechnology ETF (IBB) holds 8.9% of its total investments in Amgen, 8.0% in Biogen (BIIB), 7.3% in Celgene (CELG), and 8.4% in Gilead Sciences (GILD).