Billion in IRS Back Taxes Overshadows Amgen's Solid Q1

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Billion in IRS Back Taxes Overshadows Amgen's Solid Q1
Credit: © Reuters.

Amgen (NASDAQ: AMGN ) shares dropped over 5% after-hours, despite the company’s reported strong Q1 results, after disclosing that the IRS is seeking $7.1 billion in back taxes and penalties related to the allocation of profits between certain of its entities in the U.S. and Puerto Rico.

For the quarter, EPS was $4.25 better than the consensus estimate of $4.10. Revenue grew 6% year-over-year to $6.2 billion (vs. Street’s $6.07 billion), driven by a 2% growth in global product sales and increased Other Revenue from the company’s COVID-19 manufacturing collaboration.

The company provided its full 2022-year guidance, expecting EPS in the range of $17.00-$18.00, compared to the consensus of $17.63, and revenue in the range of $25.4-26.5 billion, compared to the consensus of $26.14 billion.

Shares of Amgen were up 11% year-to-date going into the results.

By Davit Kirakosyan

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