Amgen (AMGN-NASDAQ) posted EPS of $0.90, but $0.71 on GAAP EPS. Revenues were $3.73 Billion versus $3.7 Billion estimates. Revenues are projected for $15.4 to $16 Billion for 2007 and adjusted EPS put for 2007 at $4.30 to $4.50. Estimates for the quarter were $0.94 to $0.95 depending on your consensus, but 2007 estimates are $4.43.
The stock closed down 0.4% at $74.85 and is down almost 2% around $73.50 in the initial reaction. At the mid-point this is only a 17 P/E for 2007, so investors aren’t willing to pay up for Amgen’s earnings based on Congressional scares and potential patent issues in 2008 and beyond. The valuation isn’t the issue here, because this ons has been cheaper than many Big Pharma stocks for a while. Its market cap is $87 Billion.
Amgen is no longer treated like a biotech, it’s treated like a plain Jane drug stock. That might not be fair, but the market sets the rules.
Jon C. Ogg
January 25, 2007
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.