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Amgen
🇺🇸 NASDAQ:AMGN
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Mar 31, 2023

Amgen Q1 2023 Earnings Report

Amgen's financial performance in Q1 2023 was marked by a revenue decrease, offset by volume growth and EPS increase.

Key Takeaways

Amgen reported a 2% decrease in total revenues to $6.1 billion for Q1 2023, driven by lower Other Revenue, but this was partially offset by a 2% increase in product sales due to a 14% volume growth. GAAP EPS increased by 97% to $5.28, while non-GAAP EPS decreased by 6% to $3.98. The company generated $0.7 billion in free cash flow, and is moving forward with the Horizon Therapeutics acquisition.

Total revenues decreased by 2% to $6.1 billion, while product sales increased by 2% driven by 14% volume growth.

GAAP EPS increased by 97% to $5.28, influenced by other income from investment gains and lower outstanding shares.

Non-GAAP EPS decreased by 6% to $3.98 due to decreased revenues and increased operating expenses.

Free cash flow was $0.7 billion, impacted by the timing of payments, lower operating income, and higher capital expenditures.

Total Revenue
$6.11B
Previous year: $6.24B
-2.1%
EPS
$3.98
Previous year: $4.25
-6.4%
Gross Profit
$4.39B
Previous year: $4.68B
-6.2%
Cash and Equivalents
$31.6B
Previous year: $6.53B
+383.5%
Free Cash Flow
$700M
Previous year: $2B
-65.0%
Total Assets
$88.7B
Previous year: $59.2B
+49.9%

Amgen

Amgen

Amgen Revenue by Segment

Amgen Revenue by Geographic Location

Forward Guidance

Amgen provided full year 2023 guidance, excluding any contribution from the announced acquisition of Horizon Therapeutics plc. Total revenues are expected to be in the range of $26.2 billion to $27.3 billion. GAAP EPS is projected to be between $15.38 and $16.59, with a tax rate of 17.0% to 18.5%. Non-GAAP EPS is expected to range from $17.60 to $18.70, with a tax rate of 18.0% to 19.0%. Capital expenditures are estimated to be approximately $925 million, and share repurchases are not expected to exceed $500 million.

Positive Outlook

  • Total revenues are expected in the range of $26.2 billion to $27.3 billion.
  • GAAP EPS is expected to be between $15.38 and $16.59.
  • Non-GAAP EPS is expected to range from $17.60 to $18.70.
  • Capital expenditures are projected to be approximately $925 million.
  • Share repurchases will not exceed $500 million.

Challenges Ahead

  • Guidance excludes any contribution from the announced acquisition of Horizon Therapeutics plc.
  • GAAP tax rate is expected to be in the range of 17.0% to 18.5%.
  • Non-GAAP tax rate is expected to be in the range of 18.0% to 19.0%.
  • Share repurchases are capped at $500 million.
  • Unspecified risks and uncertainties could affect actual results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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