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Sep 30, 2023
Amgen Q3 2023 Earnings Report
Amgen's Q3 2023 financial results were released, showcasing a 4% increase in total revenues and pipeline advancements.
Key Takeaways
Amgen reported a 4% increase in total revenues to $6.9 billion, driven by an 5% increase in product sales. Volume growth of 11% included double-digit volume growth from BLINCYTO, EVENITY, Repatha and Nplate. GAAP EPS decreased 19% to $3.22, while non-GAAP EPS increased 6% to $4.96. The company generated $2.5 billion in free cash flow.
Total revenues increased by 4% to $6.9 billion, driven by a 5% increase in product sales.
GAAP EPS decreased 19% to $3.22, influenced by a net impairment charge of approximately $650 million.
Non-GAAP EPS increased 6% to $4.96, supported by increased revenues, partially offset by higher operating expenses.
Free cash flow for the quarter was $2.5 billion, compared to $2.8 billion in the same period of the previous year.
Revenue by Segment
Forward Guidance
Amgen anticipates total revenues between $28.0 billion and $28.4 billion for the full year 2023. GAAP EPS is projected to be in the range of $11.23 to $12.73, with a tax rate between 14.0% and 15.5%. Non-GAAP EPS is expected to range from $18.20 to $18.80, with a tax rate between 16.5% and 17.0%. Capital expenditures are estimated to be approximately $950 million, and share repurchases are not expected to exceed $500 million.
Positive Outlook
- Total revenues are projected to be in the range of $28.0 billion to $28.4 billion.
- Non-GAAP EPS is expected to range from $18.20 to $18.80.
- Capital expenditures are estimated to be approximately $950 million.
- Share repurchases are not expected to exceed $500 million.
- Company is making progress on pipeline programs
Challenges Ahead
- GAAP EPS is projected to be in the range of $11.23 to $12.73.
- Tax rate is expected to range between 14.0% and 15.5% on a GAAP basis.
- Tax rate is expected to range between 16.5% and 17.0% on a non-GAAP basis.
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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