Core Viewpoint - Amgen (AMGN.US) reported a strong performance in Q3, with sales and earnings exceeding analyst expectations, leading to an upward revision of its full-year guidance [1] Financial Performance - Q3 sales increased by 12% year-over-year to $9.56 billion, surpassing analyst expectations of $8.97 billion [1] - Adjusted earnings per share (EPS) were $5.64, exceeding the forecast of $5.01 [1] Guidance Update - The company raised its full-year sales guidance to a range of $35.8 billion to $36.6 billion [1] - Full-year EPS is now expected to be between $20.6 and $21.4 [1]

Core Insights - Amgen (AMGN.US) shares rose over 5.6%, reaching a high of $313.36, marking a new high in over 7 months [1] Financial Performance - In Q3, Amgen's sales increased by 12% year-over-year to $9.56 billion, surpassing analyst expectations of $8.97 billion [1] - Adjusted earnings per share (EPS) were reported at $5.64, exceeding the forecast of $5.01 [1] Guidance Update - The company raised its full-year performance guidance, projecting sales between $35.8 billion and $36.6 billion, and EPS between $20.6 and $21.4 [1]

Corporate Earnings Drive Pre-Market Activity - Amgen Inc. reported a 12% increase in total revenues to $9.6 billion and non-GAAP EPS of $5.64, exceeding forecasts and leading to a 3% rise in stock [3] - Lumentum Holdings Inc. saw a 17% stock increase after reporting Q3 2025 EPS of $0.57 on revenues of $425.2 million, driven by growth in its Cloud and Networking segment [4] - Rivian Automotive, Inc. reported Q3 2025 revenues of $1.56 billion, surpassing estimates, with a narrower loss per share of -$0.65 and a 47% year-over-year increase in automotive sales [5] - Johnson Controls International plc reported an adjusted EPS of $1.05 and sales of $6.1 billion, representing a 6% organic increase year-over-year, with an 11% growth in backlog [6] - The New York Times Company added 460,000 digital-only subscribers, boosting total revenue by 9.5% year-over-year to $700.8 million [7] Media and Global Trade Developments - China's Foreign Minister announced willingness to negotiate a free trade agreement with the European Union, emphasizing cooperation over rivalry [9] - The New York Times Company demonstrated strength in digital transformation, contributing to its revenue growth [7] Crude Oil Markets Face Headwinds - WTI crude oil prices are trading near $60.59, facing downward pressure from a stronger U.S. dollar and increased U.S. crude inventories [10] - OPEC+ has paused output hikes for Q1 2026, agreeing to a modest increase in December, but market sentiment remains cautiously bearish [10]

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Core Viewpoint - Amgen (AMGN.US) reported strong third-quarter earnings, exceeding analyst expectations in both revenue and adjusted earnings per share, leading to a positive adjustment in its full-year guidance [1] Financial Performance - Amgen's third-quarter sales reached $9.56 billion, representing a 12% year-over-year increase, surpassing analyst expectations of $8.97 billion [1] - The adjusted earnings per share for the quarter were $5.64, also exceeding the forecast of $5.01 [1] Product Performance - The company's product portfolio demonstrated robust performance, with 16 products achieving double-digit sales growth during the quarter [1] Guidance Update - Amgen raised its full-year sales guidance from a range of $35 billion to $36 billion to a new range of $35.8 billion to $36.6 billion [1] - The adjusted earnings per share forecast was increased from $20.2 to $21.3 to a new range of $20.6 to $21.4, with analyst expectations at $21.04 [1]

Core Insights - Amgen reported revenue of $9.56 billion for the quarter ended September 2025, reflecting a 12.4% increase year-over-year and a 6.87% surprise over the Zacks Consensus Estimate of $8.94 billion [1] - The earnings per share (EPS) for the quarter was $5.64, which is an increase from $5.58 in the same quarter last year, resulting in a 12.8% surprise over the consensus EPS estimate of $5.00 [1] Financial Performance Metrics - Product sales for Neulasta in the ROW were $20 million, slightly above the estimated $19.55 million, but down 23.1% year-over-year [4] - Neulasta sales in the U.S. reached $72 million, exceeding the estimate of $60.9 million, but down 14.3% from the previous year [4] - XGEVA sales in the ROW were $182 million, surpassing the average estimate of $144.77 million, marking an 8.3% year-over-year increase [4] - Enbrel sales in the ROW were $6 million, below the estimated $7.36 million, reflecting a 25% decline year-over-year [4] - Other revenues amounted to $420 million, exceeding the average estimate of $373.34 million, with a year-over-year increase of 19.3% [4] - Total product sales were $9.14 billion, surpassing the estimated $8.55 billion, representing a 12.1% increase year-over-year [4] - BLINCYTO total sales were $392 million, slightly below the estimate of $412.7 million, but showing a 19.9% increase year-over-year [4] - Otezla total sales reached $585 million, slightly above the estimate of $582.08 million, with a year-over-year increase of 3.7% [4] - Total sales for Neulasta were $92 million, exceeding the estimate of $79.77 million, but down 16.4% year-over-year [4] - Enbrel total sales were $580 million, below the estimate of $645.48 million, reflecting a 29.7% decline year-over-year [4] - LUMAKRAS/LUMYKRAS total sales were $96 million, slightly below the estimate of $100.05 million, down 2% year-over-year [4] - TEZSPIRE total sales were $377 million, exceeding the estimate of $364.18 million, with a significant year-over-year increase of 40.2% [4] Stock Performance - Amgen's shares returned +0.7% over the past month, compared to the Zacks S&P 500 composite's +2.1% change, indicating a performance in line with the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

Group 1 - Asian AI-linked companies' shares declined, influenced by falling U.S. peers and investor concerns over high valuations in crowded trades [1] - SoftBank's shares dropped by 10%, while Advantest's shares fell over 8% [1] - Palantir's shares decreased by approximately 8% despite exceeding third-quarter expectations, reflecting negative sentiment towards high valuations in the AI sector [2]

Financial Performance - Total revenues for Q3 2025 reached $9,557 million, a 12.4% increase from $8,503 million in Q3 2024[17] - Product sales increased to $9,137 million in Q3 2025, up 12.1% from $8,151 million in Q3 2024[17] - Net income for Q3 2025 was $3,216 million, representing a 13.6% increase compared to $2,830 million in Q3 2024[18] - Earnings per share (EPS) for Q3 2025 were $5.98 (basic) and $5.93 (diluted), compared to $5.27 and $5.22 in Q3 2024, reflecting increases of 13.5% and 13.6% respectively[17] - Comprehensive income for Q3 2025 was $3,338 million, compared to $2,649 million in Q3 2024, marking an increase of 26.0%[18] - Net income for the nine months ended September 30, 2025, was $6,378 million, a significant increase from $3,463 million in the same period of 2024, representing an 84.5% growth[43] - Total revenues for the nine months ended September 30, 2025, reached $26,885 million, up from $24,338 million in 2024, reflecting a 10.5% increase[43] Research and Development - Research and development expenses rose to $1,900 million in Q3 2025, a 31.0% increase from $1,450 million in Q3 2024[17] - Research and development expenses for the nine months ended September 30, 2025, totaled $5,130 million, an increase from $4,240 million in 2024, representing a 21.0% rise[43] - The company expects to continue to grow its spending on Later-Stage Clinical Programs as it advances its pipeline[197] Cash and Assets - Total assets as of September 30, 2025, were $90,141 million, a slight decrease from $91,839 million at the end of 2024[21] - Cash and cash equivalents decreased to $9,445 million from $11,973 million at the end of 2024[21] - Cash and cash equivalents at the end of the period were $9,445 million, up from $9,011 million at the end of the same period in 2024[27] Debt and Liabilities - Long-term debt decreased to $52,434 million from $56,549 million at the end of 2024, indicating a reduction in leverage[21] - Total principal amount of debt as of September 30, 2025, is $56.039 billion, down from $61.778 billion as of December 31, 2024[81] - Total carrying value of debt is $54.587 billion as of September 30, 2025, compared to $60.099 billion as of December 31, 2024[81] - Debt repayments for the three months ended September 30, 2025, totaled $1.5 billion, a decrease from $2.2 billion in the same period of 2024[83] - During the nine months ended September 30, 2025, debt repayments amounted to $5.0 billion, up from $3.6 billion in the same period of 2024[83] Dividends - The company declared dividends of $2.38 per share in Q3 2025, totaling $1,308 million[23] - Dividends paid during the nine months ended September 30, 2025, were $3,841 million, compared to $3,627 million in 2024, reflecting a 5.9% increase[27] - Quarterly cash dividends of $2.38 per share were declared in August 2025, March 2025, and December 2024, with the next payment scheduled for December 2025[88] Product Sales and Revenue Growth - Total product sales increased by 12% and 11% for the three and nine months ended September 30, 2025, respectively, driven by volume growth of 14% for both periods[153] - U.S. product sales reached $6,751 million for the three months ended September 30, 2025, up 13% from $5,979 million in 2024[152] - Prolia generated $1,139 million in revenue for the three months ended September 30, 2025, up from $1,045 million in 2024, reflecting a growth of 9.0%[45] - Repatha's revenue for the three months ended September 30, 2025, was $794 million, compared to $567 million in 2024, marking a significant increase of 40.1%[45] Legal and Regulatory Matters - The company has reached confidential settlement agreements regarding patent litigation with Samsung and Biocon, allowing them to launch their biosimilar products in the U.S.[122][126] - The company is involved in various legal proceedings and government investigations, which may have material adverse effects on its consolidated results of operations, financial position, or cash flows[118] - The FDA broadened the approved use of Repatha to include adults at increased risk for major adverse cardiovascular events due to uncontrolled low-density lipoprotein cholesterol[148] Economic and Market Conditions - Uncertain macroeconomic conditions, including inflation and rising healthcare costs, continue to pose challenges to Amgen's business[144] - The IRA and 340B Program are expected to negatively affect Amgen's business, with ENBREL and Otezla selected for Medicare price setting beginning in 2026 and 2027, respectively[145]

Market Overview - The market is experiencing poor breadth, with concerns about high valuations, particularly in tech and AI-related stocks [2][4] - Liquidity is decreasing in the market, contributing to profit-taking across various sectors, especially in technology [2][3] Valuation Metrics - The S&P 500 is trading at 23 times forward earnings estimates, above its 5-year average of 20 times, while the NASDAQ 100 is at 28 times compared to 19 times in 2022 [6] - An equal-weighted S&P 500 index is trading at a more than 25% discount to the standard S&P 500 index, indicating potential for rotation if market conditions change [7] Sector Performance - Consumer cyclicals are under scrutiny, with the potential for them to benefit from market rotation, but they need to demonstrate stronger performance [8] - Industrial sectors have shown flat performance over the past 10 to 11 months, indicating a lack of clear leadership in the market [9] Earnings Reports - Amgen reported a 12% growth in product sales, driven by a 14% increase in volume, although offset by a 4% decrease in net selling price [11] - The company raised its full-year revenue and EPS guidance, reflecting positive performance despite initial stock fluctuations [11] Small Cap Stocks - Small-cap stocks have not participated in the recent tech-driven market rally and are more exposed to temporary disruptions from business shutdowns [12][14] - Since October, larger market-cap stocks have outperformed smaller-cap stocks across most sectors, indicating a divergence in performance based on market capitalization [14]

Amgen (AMGN) came out with quarterly earnings of $5.64 per share, beating the Zacks Consensus Estimate of $5 per share. This compares to earnings of $5.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +12.80%. A quarter ago, it was expected that this world's largest biotech drugmaker would post earnings of $5.26 per share when it actually produced earnings of $6.02, delivering a surprise of +14.45%.Over the last four quarter ...