Amgen (NASDAQ:) 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.

The consensus estimate was for EPS to be $4.10. For quarter 4,25 more than the actual EPS. 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.

Company provided 2022-year full guidance. It expected EPS of $17.00-$18.00, against the consensus estimate of $17.63. Revenue was estimated at $25.4-26.5billion, instead of the consensus estimate of $26.14billion.

Amgen’s shares rose 11% over the past year, according to preliminary results.

By Davit Kirakosyan