Amgen's Shares Slip on Soft Guidance. Time to Buy?
Yesterday, Amgen (NASDAQ: AMGN), a blue-chip biotech, reported fourth-quarter earnings. Although the biotech heavyweight topped Wall Street's consensus estimates for its bottom and top lines during the three-month period, investors apparently weren't impressed. Amgen's shares immediately dropped by 3.16% in after-hours trading on the heels of this overall positive earnings report.
What's the deal? The sore spot seems to be Amgen's "soft" revenue guidance for 2020. Specifically, the company said it expects 2020 revenue to come in between $25.0 billion to $25.6 billion, implying year-over-year top-line growth of 9.4% on the high end of the range. Wall Street's prior forecast pegged the biotech's 2020 revenue at approximately $25.5 billion. So, it's not as though Amgen is calling for 2020 to be a complete disaster.
Image source: Getty Images.
Source Fool.com
