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Amgen
🇺🇸 NASDAQ:AMGN
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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.

Total Revenue
$6.9B
Previous year: $6.65B
+3.8%
EPS
$4.96
Previous year: $4.7
+5.5%
Gross Profit
$5.1B
Previous year: $5.06B
+0.7%
Cash and Equivalents
$34.7B
Previous year: $11.5B
+202.1%
Free Cash Flow
$2.5B
Previous year: $2.8B
-10.7%
Total Assets
$90.5B
Previous year: $63.7B
+42.1%

Amgen

Amgen

Amgen 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.
  • Initial accounting for the Horizon acquisition is incomplete, pending identification and measurement of assets acquired and liabilities assumed.
  • Preliminary projected range of adjustments related to Horizon acquisition is subject to change.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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