Amgen to Announce Q1 Earnings Amid Obesity Drug Competition
Pharmaceutical giant Amgen is gearing up to release its Q1 earnings on May 2nd, with analysts forecasting a profit of $3.91 per share and revenue of $7.45B. The company's remarks regarding its obesity portfolio will be of particular interest, as it vies for market share with Eli Lilly and Novo Nordisk in this rapidly expanding sector. Despite a history of surpassing EPS and revenue estimates, recent downward revisions to EPS estimates have raised concerns. Notably, UBS has expressed doubts, but also acknowledged the potential for positive data from Amgen's oral obesity asset to bolster the stock's value. Thus far this year, Amgen's stock performance has lagged behind the broader S&P 500 market.
Key Takeaways
- Amgen is poised to unveil Q1 earnings on May 2, with anticipated EPS of $3.91 (-1.8% Y/Y) and revenue of $7.45B (+22.1% Y/Y).
- Attention will be focused on Amgen's obesity portfolio, directly competing with Eli Lilly and Novo Nordisk.
- Over the past 2 years, Amgen has exceeded EPS and revenue estimates 75% of the time.
- Analysts hold varying perspectives on obesity drug candidate '786, with a potential for a positive risk-reward update.
- Amgen's stock has underperformed the broader S&P 500 market, experiencing a 4.9% YTD decrease compared to the S&P 500's 5.57% gain.
Analysis
Amid conflicting estimates on its obesity drug candidate '786, Amgen's Q1 earnings announcement may significantly impact investors. Positive developments could drive up the company's stock, which is currently trailing the S&P 500. The competition in the obesity portfolio with Eli Lilly and Novo Nordisk will be closely monitored. While Amgen has a track record of surpassing EPS and revenue estimates, recent downward revisions and skepticism from UBS present challenges. Potential consequences include shifts in market share and investment trends in the pharmaceutical sector, particularly in obesity treatments, fostering heightened competition and innovation in the long run.
Did You Know?
- Q1 earnings: Refer to a company's profits during the initial quarter of its fiscal year.
- EPS (Earnings Per Share): Portion of a company's profit allocated to each outstanding share of common stock.
- Obesity portfolio: Comprising pharmaceutical drugs and treatments targeting obesity and related health issues.
- '786: Amgen's drug candidate in clinical development, targeting the obesity market.
- YTD (Year-to-Date): Time frame beginning on the current year's first day up to the present date.
- S&P 500: Tracks the performance of the 500 largest publicly traded corporations in the US.