) is scheduled to report its second quarter 2013 earnings after
the closing bell on Jul 30, 2013.
Last quarter, Amgen delivered a positive earnings surprise of
11.43%. We expect the trend to continue in the second quarter.
Why a Likely Positive Surprise?
Our proven model shows that Amgen is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
: The Expected Surprise Prediction or ESP (Read:
Zacks ESP: A Better Way to Find Earnings
), which represents the difference between the Most Accurate
estimate of $1.74 and the Zacks Consensus Estimate of $1.71, is
+1.75%. This is a meaningful and leading indicator of a likely
positive earnings surprise for the shares.
Zacks Rank #2 (Buy)
: Note that stocks with a Zacks Rank #1, 2 and 3 have a
significantly higher chance of beating earnings estimates. We
caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
The combination of Amgen' Zacks Rank #2 and an ESP of +1.75%
makes us confident of an earnings beat on Jul 30.
What is Driving the Better-than-Expected
This biotech company has delivered positive earnings surprises in
three of the last four quarters with an average beat of 11.49%.
Key growth drivers at Amgen include Enbrel, Xgeva and Prolia.
Continued improvement in the performance of key products should
Moreover, the company's move to launch new manufacturing
technologies along with its efforts to develop the pipeline is
Other Stocks to Consider
Amgen is not the only company looking up this earnings season. We
also see likely earnings beat coming from these companies:
) has Earnings ESP of +1.49% and holds a Zacks Rank #3 (Hold).
Mylan will be reporting second quarter earnings on Aug 1 before
the market opens.
Regeneron Pharmaceuticals, Inc.
) has Earnings ESP of +7.87% and holds a Zacks Rank #3. Regeneron
will be reporting second quarter earnings on Aug 6 before the
) has Earnings ESP of +27.27 and holds a Zacks Rank #1 (Strong
Buy). Medivation will be reporting second quarter earnings on Aug
8 after market closes.
AMGEN INC (AMGN): Free Stock Analysis Report
MEDIVATION INC (MDVN): Free Stock Analysis
MYLAN INC (MYL): Free Stock Analysis Report
REGENERON PHARM (REGN): Free Stock Analysis
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