Amgen Stock: New All-Time Highs Ahead After Earnings Beat
Amgen Inc. (NASDAQ: AMGN) just delivered a strong beat-and-raise quarter. That’s pushed the stock to within striking distance of its 52-week high. That also puts it within striking distance of a new all-time high when adjusted for the company’s five stock splits since its initial public offering in 1990.
The company is showing strength across every segment of its drug portfolio. That strength is reflected in the headline numbers. Revenue of $9.56 billion came in 6.89% higher than the forecast of $8.97 billion. It was also higher than the $8.50 billion the company earned in the same quarter in 2024.
On the bottom line, the beat was even stronger. Adjusted earnings per share (EPS) of $5.64 beat estimates of $5.02 by 12.57%. And it was a slight beat from the $5.58 recorded in Q3 2024.
The company also raised its full-year revenue and adjusted EPS guidance:
- Full-year revenue of $35.8 billion to $36.6 billion; up from the prior guidance of $35 billion to $36 billion.
- Full year adjusted EPS guidance in a range of $20.60 to $21.40, up from previous guidance of $20.20 to $21.30.
- It narrowed its range for capital expenditures to between $2.2 billion and $2.3 billion, having previously guided to approximately $2.3 billion.
Technical Signals Point to New Highs
AMGN stock surged 7.7% to $319.46. This was a sharp break above a key technical resistance level, setting up a possible retest of the stock’s all-time high. The move came on substantial volume, signaling institutional buying interest following a quarter in which institutions sold more than they bought by nearly three to one.
This has also pushed AMGN above its 200-day simple moving average (SMA) at $291.78. This could be confirmation of a bullish trend reversal after several months of sideways movement. The next area of resistance sits near the $320–$325 zone, which corresponds to the stock’s prior record high on a split-adjusted basis. A sustained close above that level would open the door for new all-time highs.
Momentum indicators support the bullish bias. The MACD line has crossed decisively above its signal line and turned positive, indicating a strong buy signal that suggests upward momentum could continue. The widening spread between the MACD and signal line further indicates increasing bullish momentum.
That said, the stock could experience some profit-taking after the sharp run-up. But as long as AMGN holds above the $300 level, which is now a vital support area, the uptrend remains intact.
The Definition of Big Pharma
It’s tempting to speculate on low-priced biotechnology stocks. These companies are attempting to develop drugs to treat rare diseases or those for which there are currently no or few treatment options. The risk is that many of these stocks have little to no revenue. Even those with steady revenue are years away from profitability.
These can be lottery tickets, but many end in heartbreak.
The opposite is true with Amgen. The company maintains a list of approved drugs that is far too extensive to be covered in one article. In the just-ended quarter, Amgen reported that product sales rose 12% year-over-year, fueled by 14% volume growth.
However, what’s truly impressive is that its revenue is nearly equally divided between its General Disease, Immunology, Oncology, and Rare Disease portfolios. Throughout that portfolio, at least 16 drugs achieved sales growth of at least double digits.
However, what makes Amgen an attractive long-term investment is the company’s expansive pipeline. It also includes the company’s proprietary weight loss drug candidate, MariTide, which is moving into Phase 3 trials. That means investors are likely looking at 2027, if and when it receives FDA approval, but it’s not the only candidate in Phase 3 trials.
However, bringing these drugs to market is also expensive. But that's where Amgen stands out.
In the company’s earnings report, it noted that it spent $1.9 billion on research and development (R&D) in the quarter, a 31% year-over-year increase. However, that spending is well supported by the increased revenue it’s generating from its commercially available drugs.
That’s the benefit of investing in big pharma stocks. They’re funding their future with revenue that’s being generated in the present, not from share offerings that dilute shareholder value.
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