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Amgen
🇺🇸 NASDAQ:AMGN
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•
Mar 31, 2021

Amgen Q1 2021 Earnings Report

Amgen's financial performance declined due to the impact of COVID-19 but was offset by volume growth in key products.

Key Takeaways

Amgen's first quarter 2021 results showed a decrease in total revenues by 4% to $5.9 billion, driven by lower net selling prices, though partially offset by volume growth. GAAP EPS decreased by 8% to $2.83, while non-GAAP EPS decreased by 12% to $3.70. The company reaffirmed its full-year revenue guidance and revised its GAAP EPS guidance.

Total revenues decreased by 4% to $5.9 billion due to lower net selling prices, offset by volume growth.

GAAP EPS decreased by 8% to $2.83, and non-GAAP EPS decreased by 12% to $3.70.

The company generated $1.9 billion in free cash flow, compared to $2.0 billion in the first quarter of 2020.

2021 total revenues guidance reaffirmed at $25.8-$26.6 billion; EPS guidance revised to $9.11-$10.71 on a GAAP basis, and reaffirmed at $16.00-$17.00 on a non-GAAP basis.

Total Revenue
$5.9B
Previous year: $6.16B
-4.2%
EPS
$3.7
Previous year: $4.17
-11.3%
Gross Profit
$4.41B
Previous year: $4.65B
-5.1%
Cash and Equivalents
$6.11B
Previous year: $7.69B
-20.5%
Free Cash Flow
$1.9B
Previous year: $1.99B
-4.6%
Total Assets
$62.5B
Previous year: $61.7B
+1.4%

Amgen

Amgen

Amgen Revenue by Segment

Amgen Revenue by Geographic Location

Forward Guidance

Amgen reaffirmed its total revenue guidance for 2021, projecting revenues between $25.8 billion and $26.6 billion. The company revised its GAAP EPS guidance to $9.11-$10.71 and reaffirmed its non-GAAP EPS guidance at $16.00-$17.00.

Positive Outlook

  • Total revenues in the range of $25.8 billion to $26.6 billion, unchanged from previous guidance.
  • On a non-GAAP basis, EPS in the range of $16.00 to $17.00, unchanged from previous guidance
  • Share repurchases in the range of $3.0 billion to $5.0 billion, versus previous guidance of $3.0 billion to $4.0 billion.
  • Enrollment completed in a Phase 3 study (CodeBreaK 200) comparing LUMAKRAS to docetaxel in patients with KRAS G12C-mutated advanced NSCLC.
  • Regulatory submissions in the U.S. and EU are expected in Q2 2021 for Tezepelumab.

Challenges Ahead

  • On a GAAP basis, EPS in the range of $9.11 to $10.71.
  • Previously, the Company expected GAAP EPS in the range of $12.12 to $13.17.
  • Capital expenditures to be approximately $900 million.
  • Parsabiv’s inclusion in the end-stage renal disease (ESRD) bundled payment system in the U.S., we expect declining year-over-year sales trends to continue through 2021 as numerous dialysis centers update their treatment protocols due to the reimbursement change
  • We expect to see continuing disruption from COVID-19 in the second quarter and, to a lesser degree, in the second half of the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Amgen