Baird Isn't Changing Its Outlook On Amgen

Baird previewed Amgen, Inc. AMGN's upcoming 2Q16 earnings scheduled to be released on July 27. In the report published Friday, analysts maintained their earnings outlook, projecting $5.36 billion in net income, in line with consensus of $5.34 billion, and non-GAAP diluted EPS of $2.78 versus consensus of $2.72.

They see no reason why performance this quarter should meaningfully differ from consensus, stating they expect strong declines in sales of the company's legacy products in the long run, "but for now, with the threat of a Neulasta biosimilar at bay in the near term, the company looks set to retain hold over the legacy products."

"With more selling days this quarter, we expect modest comebacks versus the first quarter for some of the more seasonally driven products, such as Aranesp, Epogen, Neulasta, and Neupogen," wrote Baird, forecasting $1.35 billion in sales for Neupogen and Neulasta versus consensus of $1.38 billion, and $818 million for the ESAs (Epogen and Aranesp), in line with the consensus.

The firm has a Neutral rating on Amgen with a $157 price target.