Amgen Inc (NASDAQ:AMGN) reported better-than-expected fourth-quarter results on Tuesday, but its shares fell 1.5% in premarket trading Wednesday as the company’s profit outlook for 2025 fell short of analyst expectations.
The biotechnology giant posted adjusted earnings per share of $5.31, surpassing the analyst estimate of $5.04. Revenue for the quarter came in at $9.1 billion, exceeding the consensus estimate of $8.85 billion and representing an 11% increase YoY.
Despite the strong quarterly performance, investors appeared to focus on Amgen’s guidance for fiscal year 2025. The company projects earnings per share between $20.00 and $21.20, with the midpoint of $20.60 falling below the analyst consensus of $20.82.
Full-year revenue is projected at $34.3 billion, slightly below the consensus estimate of $34.53 billion.
"AMGN posted a 4Q beat and 2025 rev/EPS guidance bracketed consensus, which we view as a positive given questions ahead of the quarter," Morgan Stanley (NYSE:MS) analysts commented in a post-earnings note.
The company’s fourth-quarter product sales grew 11%, primarily driven by 14% volume growth. Excluding sales from the recently acquired Horizon Therapeutics (NASDAQ:HZNP), product sales increased 10%, fueled by 15% volume growth. Ten products, including Repatha, BLINCYTO, and TEZSPIRE, delivered at least double-digit sales growth in the quarter.
For the full year 2024, Amgen’s total revenues increased 19% to $33.4 billion compared to 2023. Product sales grew 19%, driven by 23% volume growth, partially offset by 2% lower net selling price.
Robert A. Bradway, chairman and CEO of Amgen, commented on the results: "Robust growth in sales and earnings throughout 2024 reflects the momentum of our business. With strong performance globally, we are investing heavily in our rapidly advancing pipeline to deliver innovative therapies across our four therapeutic areas."
The company generated $10.4 billion of free cash flow for the full year, up from $7.4 billion in 2023, driven by business performance and timing of working capital items.
"2025 is another catalyst-rich year for Amgen and includes multiple overlooked inflection points for the pipeline and opportunities to drive the stock," TD (TSX:TD) Cowen analysts said in a post-earnings note.
Obesity remains a "key focus" for investors as MariTide moves into Phase 3 trials in the first half of 2025, analysts added,1with additional Phase 2 data expected later this year. Meanwhile, AMG 513 has encountered a setback with a Phase 1 clinical hold, though management remains confident the issue will be resolved, as they believe it is not drug-related.