Tuesday Morning’s 10 Tech Stock Movers Include Amgen, Moderna and Nvidia
📈 Amgen shares gained 5.8% to $236.35 on Tuesday morning following the company's earnings release and subsequent business review.
💰 The company announced a new share repurchase program of $6 billion to $7 billion for the current year, adding to a previously scheduled $6 billion buyback.
📊 Amgen reported fourth-quarter profits that beat expectations, though revenue figures missed analyst forecasts.
🚀 Long-term guidance through 2030 projects mid-single-digit CAGR growth and an adjusted operating margin of approximately 50%.
💵 Management expects adjusted earnings per share to grow at a high-single- to low-double-digit CAGR over the next decade.
Bullish Signals
- Amgen shares rose 5.8% to $236.35, reflecting investor confidence in the company's financial resilience despite missing revenue expectations.
- The company announced a substantial new share repurchase program of $6 billion to $7 billion for the current year, demonstrating a strong commitment to returning capital to shareholders.
Risk Factors
- Amgen missed fourth-quarter revenue expectations, which initially weighed on the stock despite beating profit estimates.
Full Analysis
Amgen Inc. (NASDAQ: AMGN) shares rose approximately 5.8% to $236.35 on Tuesday morning, driven by a strategic announcement following its fourth-quarter earnings report released after markets closed Monday. While the company reported profits that exceeded analyst expectations, it missed revenue targets, leading to a mixed market reaction that was ultimately overshadowed by its capital allocation plans.
During an online business review session held Tuesday morning, Amgen outlined a significant share repurchase program, committing to buy back between $6 billion and $7 billion of shares for the current year. This initiative builds upon a previously scheduled $6 billion buyback for the quarter, signaling strong management confidence in the company's financial position and commitment to returning value to shareholders despite the recent revenue miss.
Looking ahead, Amgen provided updated long-term guidance extending through 2030, projecting a compound annual growth rate (CAGR) in the mid-single digits for overall business. The company also forecast an adjusted operating margin of approximately 50% and expects adjusted earnings per share to grow at a high-single- to low-double-digit CAGR, offering investors a clear view of its future profitability trajectory.