Sep 30, 2022

Amgen Q3 2022 Earnings Report

Reported a decrease in total revenues but an increase in GAAP and non-GAAP EPS, driven by volume growth and decreased operating expenses.

Key Takeaways

Amgen's Q3 2022 financial results showed a slight decrease in total revenues, but an increase in both GAAP and non-GAAP EPS. The company's medicines generated 8% volume growth globally, with 11 products achieving record quarterly sales. The company revised its 2022 total revenues guidance to $26.0-$26.3 billion and EPS guidance to $11.46-$12.17 on a GAAP basis, and $17.25-$17.85 on a non-GAAP basis.

Total revenues decreased 1% to $6.7 billion, impacted by lower net selling prices and foreign exchange.

GAAP EPS increased from $3.31 to $3.98, and non-GAAP EPS increased from $4.08 to $4.70, driven by decreased operating expenses and lower weighted-average shares outstanding.

Free cash flow increased to $2.8 billion compared to $2.2 billion in the third quarter of 2021.

Volume growth was strong for several products, including EVENITY, Repatha, and Vectibix.

Total Revenue
$6.65B
Previous year: $6.71B
-0.8%
EPS
$4.7
Previous year: $4.67
+0.6%
Gross Profit
$5.06B
Previous year: $5.1B
-0.6%
Cash and Equivalents
$11.5B
Previous year: $12B
-3.9%
Free Cash Flow
$2.8B
Previous year: $2.2B
+27.3%
Total Assets
$63.7B
Previous year: $65B
-2.0%

Amgen

Amgen

Amgen Revenue by Segment

Forward Guidance

For the full year 2022, the company expects total revenues in the range of $26.0 billion to $26.3 billion. On a GAAP basis, EPS is expected in the range of $11.46 to $12.17, and a tax rate in the range of 11.0% to 12.5%. On a non-GAAP basis, EPS is expected in the range of $17.25 to $17.85, and a tax rate in the range of 13.5% to 14.5%.

Positive Outlook

  • Total revenues in the range of $26.0 billion to $26.3 billion.
  • GAAP EPS in the range of $11.46 to $12.17.
  • GAAP tax rate in the range of 11.0% to 12.5%.
  • Non-GAAP EPS in the range of $17.25 to $17.85.
  • Non-GAAP tax rate in the range of 13.5% to 14.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income