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Dec 31, 2023

Amgen Q4 2023 Earnings Report

Amgen's financial performance for Q4 2023 showed revenue growth driven by volume, with GAAP EPS impacted by acquisition-related expenses.

Key Takeaways

Amgen reported a 20% increase in total revenues for the fourth quarter of 2023, reaching $8.2 billion. This growth was primarily driven by a 23% increase in volume, although partially offset by a 3% decrease in net selling price. GAAP EPS decreased by 53% to $1.42, influenced by acquisition-related expenses and Horizon's operating expenses. Non-GAAP EPS increased by 15% to $4.71. The company's performance included $954 million in sales from the Horizon Therapeutics acquisition.

Total revenues increased by 20% to $8.2 billion, driven by a 23% volume growth.

GAAP EPS decreased by 53% to $1.42 due to acquisition-related expenses and incremental operating expenses from Horizon.

Non-GAAP EPS increased by 15% to $4.71, driven by increased revenues.

The company generated $7.4 billion of free cash flow for the full year.

Total Revenue
$8.2B
Previous year: $6.84B
+19.8%
EPS
$4.71
Previous year: $4.09
+15.2%
Gross Profit
$5.08B
Previous year: $5.09B
-0.2%
Cash and Equivalents
$10.9B
Previous year: $7.63B
+42.9%
Free Cash Flow
$300M
Previous year: $2.31B
-87.0%
Total Assets
$97.2B
Previous year: $65.1B
+49.2%

Amgen

Amgen

Amgen Revenue by Segment

Amgen Revenue by Geographic Location

Forward Guidance

For the full year 2024, Amgen expects total revenues in the range of $32.4 billion to $33.8 billion and non-GAAP EPS in the range of $18.90 to $20.30.

Positive Outlook

  • Total revenues are expected to be in the range of $32.4 billion to $33.8 billion.
  • Capital expenditures are anticipated to be approximately $1.1 billion.
  • On a non-GAAP basis, EPS is expected to be in the range of $18.90 to $20.30.
  • Share repurchases are planned not to exceed $500 million.
  • GAAP tax rate in the range of 11.5% to 13.0%.

Challenges Ahead

  • GAAP EPS is projected to be in the range of $8.42 to $9.87.
  • Non-GAAP tax rate is expected to be in the range of 16.0% to 17.0%.
  • Share repurchases are capped at $500 million.
  • Unspecified risks associated with forward-looking statements.
  • Dependence on successful marketing and regulatory developments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income