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Mar 31, 2022
Amgen Q1 2022 Earnings Report
Amgen's financial results for Q1 2022 were announced, demonstrating revenue growth and progress in key product areas.
Key Takeaways
Amgen reported a 6% increase in total revenues, reaching $6.2 billion, driven by volume growth in key products and contributions from COVID-19 manufacturing collaborations. GAAP EPS decreased by 5% to $2.68, while non-GAAP EPS increased by 15% to $4.25. The company reaffirmed its 2022 total revenue guidance and revised its EPS guidance.
Total revenues increased by 6% to $6.2 billion, driven by a 2% growth in global product sales and increased Other Revenue from COVID-19 manufacturing collaboration.
GAAP EPS decreased 5% to $2.68, while non-GAAP EPS increased 15% to $4.25, driven by increased revenues and lower weighted-average shares outstanding.
GAAP operating income increased 17% to $2.5 billion, and GAAP operating margin increased 5.5 percentage points to 43.6%.
The company generated $2.0 billion of free cash flow, compared to $1.9 billion in the first quarter of 2021.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amgen reaffirmed its 2022 total revenues guidance at $25.4-$26.5 billion and non-GAAP EPS guidance at $17.00-$18.00. The company revised its GAAP EPS guidance to $12.53-$13.58.
Positive Outlook
- Total revenues are expected to be in the range of $25.4 billion to $26.5 billion.
- Non-GAAP EPS is expected to be in the range of $17.00 to $18.00.
- Capital expenditures are anticipated to be approximately $950 million.
- Share repurchases are planned in the range of $6.0 billion to $7.0 billion.
- Non-GAAP tax rate is expected to be in the range of 13.5% to 14.5%.
Challenges Ahead
- GAAP EPS is projected to be in the range of $12.53 to $13.58.
- GAAP tax rate is expected to be in the range of 10.5% to 12.0%.
- The company is contesting adjustments and penalties proposed by the IRS for the 2010-15 period, which could result in additional federal tax of approximately $5.1 billion, plus interest, and penalties of approximately $2 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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