Shares of Amgen (NASDAQ:AMGN) are trading lower in premarket Friday despite the company raising its full-year outlook.
For Q1, Amgen reported EPS of $3.98 on revenue of $6.1 billion, which compares to the analyst consensus for earnings of $3.82 on sales of $6.12B. Revenue fell over 2% year-over-year despite product sales jumping by 2%. This is because ‘other revenue’ came in at $259 million, below the $318.1M expected.
For the full year, the company raised guidance for EPS of $18.15 on revenue of $26.75B at the midpoint of its guidance. The prior guidance was calling for EPS of $18.00 on revenue of $26.6B while analysts were looking for a profit per share of $17.72 on revenue of $26.7B.
"We delivered 14% volume growth driven by the breadth of our portfolio and strong demand for our products globally," said Robert A. Bradway, chairman and chief executive officer.
Oppenheimer analysts said the results were “reasonable” with their price target going to $290 per share.
“We're encouraged by the strong ex-US growth in 1Q, which we think is a key growth driver in 2023,” they said in a note.
Wells Fargo analysts argue Amgen delivered a “low-quality EPS beat.”
"AMGN 1Q23 seems a bit strange as I&I posted a huge miss driven by Enbrel while oncology was very strong, making revenue come in line. Below OpEx line seems to be driving the 4% bottom-line beat. Revenue and expense guidance are both raised slightly,” the analysts further noted.