Earnings Preview: Amgen

Amgen (AMGN) is expected to report Q2 earnings today, July 28, after market close, with conference call scheduled for 5:00 pm ET.

Guidance

Analysts are expecting a profit of $1.02 on revenue of $3.58B. The consensus range for EPS is 91c to $1.14, with a revenue range of $3.50B to $3.68B, according to First Call.

Analyst Views

For Q1, the company reported EPS $1.12 vs. consensus of $1.04 and Q1 revenue $3.61B vs. consensus of $3.62B. The company gave 2008 EPS guidance $4.00 to $4.30 and 2008 revenue guidance $14.2B to $14.6B. Possible negatives for this quarter's earnings are slowing sales for Aranesp, which is used to treat anemia in chemotherapy patients and slowing sales for Enbrel. The FDA cautioned against the use of the drug in some cases. Also, Medicare restrictions to Amgen's ESA business might challenge the company's earnings. On July 10, Citigroup noted that it expects Amgen to report solid Q2 results but cautions investors that the new label for ESA should be announced in a few days and will likely further restrictions in breast cancer use. Citigroup maintained a Hold rating on the stock.