Skip to main content

AMGN STOCK WRITE UP


AMGN

  • P/E: 16.1
  • GAAP EPS Y-O-Y GROWTH LAST QUARTER: $.22
  • SECTOR: HEALTH TECHNOLOGY
  • ASSETS-LIABILITIES: 1.62
  • DIVIDEND: 2.54%

Amgen is a leading biotech company with a solid financial foundation. It has managed to reduce its spending on research and development while increasing revenue through its sales of established drugs such as Enbrel, and Prolia. The company has several rapidly growing drugs that are newer to the market, with many drugs in the company's pipeline.
In its last quarter, Amgen posted 7.7% revenue growth with 7.5% net income growth. The company spent less, however, in the most recent quarter when compared with the comparable quarter from the prior year, on research and development. The reduction in operating margin came from an increased interest expense in the quarter. Although the company spent less on research and development, its revenue did increase. Amgen is continuing to innovate despite reduced research and development budget, with several drugs in late stage trials. The company will be able to sustain growth if its upcoming drugs are successful.
Robert A Bradway, the company's CEO, previously worked as an investment banker in Morgan Stanley's healthcare division. Although Amgen lost $150 million of its revenue on its largest drug, Enbrel, Marketwatch reports that the company narrative and pipeline are positive. Positive news surrounding the company's Repatha, Prolia, and Xgeva drugs could be promising for the company, according to Marketwatch. Wall Street has predicted the company will report earnings of $3 in the quarter reporting 4/26/2017.
The company has a solid financial foundation. Its price-to-earnings multiple is relatively low, giving the share price opportunity to increase to reveal the company's true value. Additionally, a large yield provides investors of AMGN with guaranteed investment return at 2.54%. Amgen has a good ratio of assets to liabilities, and is reducing its operation costs while its revenue is increasing. While Amgen is not the largest company in its sector, it has solid growth and strong financial backing.

SOURCES:






Labels:

Comments

Post a Comment

Popular posts from this blog

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more

CLS STOCK WRITE UP

CLS (CELESTICA) P/E: 15.1 GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.14 SECTOR: ELECTRONIC TECHNOLOGY ASSETS-LIABILITIES: 1.78 DIVIDEND: none Celestica, a spinoff from IBM, manufactures electronics and provides supply chain services for a variety of businesses. The company has successfully improved upon its operating margins and revenue during its last fiscal year. Reporting April 20 th before market open, the company will try to beat Wall street expectations of $.28 and its own guidance of $.24-$.3. Celestica provides services for the communications, consumer, server, and storage industries, as well as working in diversified companies. This wide array of services gives Celestica the opportunity to expand on revenue when one of its segments is lagging. Rather than developing new products to boost revenue, Celestica must rely on increasing customer satisfaction by managing supply chains well for its clients. In order to showcase their services,...
Post a Comment
Read more

GOOG STOCK WRITE UP

GOOG (ALPHABET INC) P/E: 31.7 GAAP DILUTED EPS GROWTH Q4 '15 to Q4 '16: $.50 SECTOR: TECHNOLOGY SERVICES ASSETS-LIABILITIES: 5.8 DIVIDEND: NONE This stock is a new addition to my portfolio. The price-to-earnings multiple is higher than my target price-to-earnings multiple, but I decided to purchase the stock due to its solid year-over-year EPS growth, positive chart alignment, positive cash flow, ubiquitous market presence, and rapid growth in the technology sector. I believe this stock will head much higher, and that its earnings will keep up with the rapid pace of its growth to ensure its stability. Google became a popular product due to its excellent search engine. As a result of its success, with approximately 80.5% of global market share according to a recent survey, Google has built a strong revenue base through its advertising services. However, Google has taken the challenge of expanding its services beyond the search engine field i...
Post a Comment
Read more