Jun 30, 2022

Amgen Q2 2022 Earnings Report

Amgen's financial results for Q2 2022 were announced, demonstrating revenue growth and increased EPS.

Key Takeaways

Amgen reported a 1% increase in total revenues to $6.6 billion for Q2 2022. GAAP EPS increased to $2.45, and non-GAAP EPS increased to $4.65. The company generated $1.7 billion in free cash flow.

Total revenues increased 1% to $6.6 billion, driven by growth in global product sales.

GAAP EPS increased to $2.45, and non-GAAP EPS increased to $4.65, driven by lower operating expenses.

Free cash flow remained consistent at $1.7 billion compared to Q2 2021.

2022 total revenues guidance revised to $25.5-$26.4 billion; EPS guidance revised to $11.01-$12.15 on a GAAP basis, and reaffirmed at $17.00-$18.00 on a non-GAAP basis.

Total Revenue
$6.59B
Previous year: $6.53B
+1.0%
EPS
$4.65
Previous year: $4.38
+6.2%
Gross Profit
$5.08B
Previous year: $4.89B
+4.0%
Cash and Equivalents
$5.2B
Previous year: $6.63B
-21.5%
Free Cash Flow
$1.7B
Previous year: $1.7B
+0.0%
Total Assets
$59.3B
Previous year: $59.8B
-0.8%

Amgen

Amgen

Amgen Revenue by Segment

Amgen Revenue by Geographic Location

Forward Guidance

Amgen has revised its full year 2022 guidance, expecting total revenues to be in the range of $25.5 billion to $26.4 billion. GAAP EPS is projected to be between $11.01 and $12.15, while non-GAAP EPS is reaffirmed at $17.00 to $18.00.

Positive Outlook

  • Total revenues are expected to be in the range of $25.5 billion to $26.4 billion.
  • Capital expenditures are projected to be approximately $950 million.
  • Share repurchases are expected to be in the range of $6.0 billion to $7.0 billion.
  • GAAP EPS in the range of $11.01 to $12.15.
  • Non-GAAP EPS reaffirmed at $17.00 to $18.00.

Challenges Ahead

  • GAAP tax rate is expected to be in the range of 11.5% to 13.0%.
  • Non-GAAP tax rate is expected to be in the range of 14.0% to 15.0%.
  • Unspecified potential negative impacts from market competition.
  • Unspecified potential negative impacts from pricing pressure.
  • Unspecified potential negative impacts from reimbursement policies.

Revenue & Expenses

Visualization of income flow from segment revenue to net income