A big company called Amgen made more money than people thought in the first three months of this year. They sold a lot more stuff and got some extra money from another company for helping with a medical experiment. Read from source...
1. The title is misleading and sensationalized, as it implies that Amgen had better-than-expected results, when in fact they met the analyst consensus estimate of $3.87 per share. This suggests a lack of objective reporting and an attempt to manipulate reader emotions.
2. The article does not provide any context or explanation for why the Horizon acquisition led to higher operating and interest expenses, which may be important for investors to understand the impact on Amgen's financials. Instead, it simply states that these factors partially offset the revenue growth, without delving into the details of how or why they occurred.
3. The article mentions that product sales grew by 22%, but does not specify which products contributed to this growth, nor how significant this increase is compared to Amgen's total product portfolio. This lack of specificity may obscure the actual performance of Amgen's core business segments and mask potential challenges or opportunities in certain areas.
4. The article includes a paragraph about Arrowhead Pharmaceuticals and Royalty Pharm
1. Buy AMGN stock for long-term growth and dividend income. The company has delivered consistent earnings growth, beating estimates in Q1, and has a strong pipeline of products in development. The recent acquisition of Horizon is expected to boost revenues and expand the product portfolio. The stock currently trades at 14 times forward earnings, which is reasonable for a biotech company with a strong competitive position. The dividend yield is 3.2%, which provides income stability and cash flow visibility.
2. Sell Arrowhead Pharmaceuticals, Inc. (ARWR) stock as it is overvalued and has significant risks. The company is still in the early stages of developing its experimental RNA interference therapeutics, and there are no guarantees that they will succeed in clinical trials or gain regulatory approval. The milestone payment from Royalty Pharma Plc (RVP) does not change the fundamental outlook for the company, which remains uncertain and speculative. The stock is trading at 40 times forward earnings, which is unsustainable given the lack of revenue generation and profitability.