Amgen Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Amgen (NASDAQ:AMGN) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. Amgen is a biotechnology medicines company that discovers, develops, manufactures, and markets medicines for grave illnesses.

Amgen Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.43 per share, a rise of 20.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.39. Between one and three months ago, the average estimate moved up. It has dropped from $1.47 during the last month. Analysts are projecting profit to rise by 23.9% compared to last year’s $6.49.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of $1.67 per share versus a mean estimate of net income of $1.43 per share.

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A Look Back: In the third quarter, profit rose more than twofold to $1.11 billion ($1.41 a share) from $454 million (50 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 9.5% to $4.32 billion from $3.94 billion.

Here’s how Amgen traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

AMGN

Wall St. Revenue Expectations: On average, analysts predict $4.37 billion in revenue this quarter, a rise of 10.1% from the year-ago quarter. Analysts are forecasting total revenue of $17.21 billion for the year, a rise of 10.5% from last year’s revenue of $15.58 billion.

Stock Price Performance: Between December 18, 2012 and January 17, 2013, the stock price dropped $5.35 (-6%), from $89.29 to $83.94. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 23, 2012, when shares rose for seven straight days, increasing 4.3% (+$3.58) over that span. It saw one of its worst periods between January 9, 2013 and January 17, 2013 when shares fell for seven straight days, dropping 5.3% (-$4.73) over that span.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 5.2% in the first quarter and 8.2% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.4% in the fourth quarter of the last fiscal year, 9.2% in the first quarter and 13.1% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With 13 analysts rating the stock as a buy, none rating it as a sell and 13 rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.9 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.68 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 10.3% to $32.6 billion while liabilities rose by 4.2% to $8.37 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)