The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Amgen beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share was unchanged.
Margins contracted across the board.
Amgen notched revenue of $3.97 billion. The 20 analysts polled by S&P Capital IQ hoped for revenue of $3.92 billion. Sales were 3.4% higher than the prior-year quarter's $3.84 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.21. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.22 per share on the same basis. GAAP EPS of $1.08 for Q4 were 0.2% higher than the prior-year quarter's $1.08 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 83.5%, 160 basis points worse than the prior-year quarter. Operating margin was 29.2%, 170 basis points worse than the prior-year quarter. Net margin was 23.5%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.95 billion. On the bottom line, the average EPS estimate is $1.46.
Next year's average estimate for revenue is $16.20 billion. The average EPS estimate is $6.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,955 members out of 2,122 rating the stock outperform, and 167 members rating it underperform. Among 573 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 549 give Amgen a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amgen is outperform, with an average price target of $65.26.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.