Amgen Q3 2020 Earnings Report
Key Takeaways
Amgen reported a 12% increase in total revenues to $6.4 billion for the third quarter of 2020, driven by higher volume growth. GAAP EPS increased by 5% to $3.43, while non-GAAP EPS increased by 19% to $4.37. The company generated $3.2 billion in free cash flow.
Total revenues increased by 12% to $6.4 billion compared to Q3 2019, driven by volume growth.
GAAP EPS increased 5% to $3.43, and non-GAAP EPS increased 19% to $4.37.
Free cash flow remained consistent at $3.2 billion compared to the same period last year.
2020 total revenue guidance narrowed to $25.1-$25.5 billion, and EPS guidance was revised to $11.53-$11.93 on a GAAP basis and $15.80-$16.15 on a non-GAAP basis.
Amgen
Amgen
Amgen Revenue by Segment
Amgen Revenue by Geographic Location
Forward Guidance
Amgen narrowed its total revenue guidance for 2020 to $25.1-$25.5 billion. The company revised its EPS guidance to $11.53-$11.93 on a GAAP basis and $15.80-$16.15 on a non-GAAP basis.
Positive Outlook
- Total revenues are expected to be in the range of $25.1 billion to $25.5 billion.
- GAAP EPS is projected to be in the range of $11.53 to $11.93.
- Non-GAAP EPS is expected to be in the range of $15.80 to $16.15.
- Capital expenditures are estimated to be approximately $600 million.
- Quarterly dividend is maintained at $1.60 per share.
Challenges Ahead
- Share repurchases are expected to be at the lower end of the previous guidance of $3 billion to $5 billion.
- The company anticipates continued quarter-to-quarter variability due to the pandemic.
- Expected decline in year-over-year growth rates for Prolia in Q4 compared to pre-COVID-19 trends.
- U.S. sales of Parsabiv were negatively impacted late in Q3, and this trend is expected to continue in Q4.
- Neulasta pricing and volume trends are expected to continue to decline.
Revenue & Expenses
Visualization of income flow from segment revenue to net income