Can Amgen (AMGN) Keep the Earnings Surprise Streak Alive?

Core Insights - Amgen is positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 11.68% [1][5] Earnings Performance - In the last reported quarter, Amgen achieved earnings of $4.9 per share, surpassing the Zacks Consensus Estimate of $4.16 per share by 17.79% [2] - In the previous quarter, Amgen's earnings were $5.31 per share against an expected $5.03 per share, resulting in a surprise of 5.57% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Amgen, with a positive Earnings ESP of +0.07%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] Importance of Earnings ESP - Many companies beat consensus EPS estimates, but this is not the sole reason for share price gains; stability can also occur even with missed estimates [10]