NASDAQ$AMGN

Amgen Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Amgen's financial performance in Q2 2020 showed revenue growth despite challenges posed by the COVID-19 pandemic, driven by increased unit demand and strategic acquisitions.

Amgen reported a 6% increase in total revenues to $6.2 billion for Q2 2020, driven by higher unit demand, although partially offset by lower net selling prices. GAAP EPS decreased by 15% to $3.05, primarily due to amortization costs from the Otezla acquisition, while non-GAAP EPS increased by 7% to $4.25. The company reaffirmed its 2020 total revenue guidance at $25.0-$25.6 billion and revised its EPS guidance to $10.73-$11.43 on a GAAP basis and $15.10-$15.75 on a non-GAAP basis.

  • Total revenues increased by 6% to $6.2 billion, driven by higher unit demand.
  • GAAP EPS decreased by 15% to $3.05, impacted by Otezla acquisition costs.
  • Non-GAAP EPS increased by 7% to $4.25, driven by increased revenues and fewer weighted-average shares outstanding.
  • Free cash flow increased to $2.7 billion, driven primarily by the timing of tax payments.

Headline financials

Total Revenue

$6.21B

Previous: $5.87B+5.7%
EPS (adj)

$4.25

Previous: $3.97+7.1%
Capital Expenditures

-$300M

Previous: -$260M-15.4%
Free Cash Flow

$1.5B

Previous: $1.92B-21.7%
Net Income

$1.8B

Previous: $2.18B-17.3%
Operating Income

$2.32B

Previous: $2.68B-13.3%
Gross Profit

$4.72B

Previous: $4.86B-2.9%
Cash & Equivalents

$9.15B

Previous: $5.53B+65.5%
Total Assets

$65B

Previous: $59.4B+9.5%

Revenue & EPS history

Amgen · Revenue · Quarterly

$6.21B

Q2 2020+5.7%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Amgen · $5.4B total across 16 segments · Q2 2020

  • Enbrel
    $1.25B-8.6%
  • Prolia
    $659M-5.6%
  • Neulasta
    $593M-28.0%
  • Otezla
    $561M
  • XGEVA
    $435M-12.8%
  • Aranesp
    $387M-11.2%
  • KYPROLIS
    $253M-5.2%
  • Repatha
    $200M+31.6%
  • Vectibix
    $195M-0.5%
  • Nplate
    $193M-4.0%
  • Parsabiv
    $186M+10.7%
  • MVASI
    $172M
  • EVENITY
    $101M+260.7%
  • BLINCYTO
    $93M+19.2%
  • AMJEVITA/AMGEVITA
    $62M+19.2%
  • Other products
    $60M-24.1%

Forward guidance

Amgen reaffirmed its 2020 total revenue guidance at $25.0 billion to $25.6 billion, and revised its EPS guidance to $10.73-$11.43 on a GAAP basis and $15.10-$15.75 on a non-GAAP basis.

Tailwinds

  • Total revenues are expected to be in the range of $25.0 billion to $25.6 billion.
  • Capital expenditures are projected to be approximately $600 million.
  • The quarterly dividend is maintained at $1.60 per share.
  • Share repurchases will be executed opportunistically.
  • AMG 510 (sotorasib) is expected to have initial data from a potentially pivotal Phase 2 monotherapy study in patients with advanced non-small cell lung cancer (NSCLC) in H2 2020.

Headwinds

  • Share repurchases will be at the lower end of the previous guidance of $3 billion to $5 billion.
  • Sales of negatively affected products fell most early in the second quarter with sales beginning to recover in the latter weeks of the quarter.
  • Prolia sales decreased 6% year-over-year driven by lower unit demand as a result of fewer office visits by osteoporosis patients.
  • We anticipate a slowdown in reported sales in the third quarter as the first half of 2020 benefited from larger shipments to Astellas, our partner in Japan, to ensure they had appropriate inventory.
  • Neulasta sales decreased 28% year-over-year driven by the impact of biosimilar competition on net selling price and unit demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.1%

Avg return

30 days after

53%

39 / 73 earnings

Positive

+12.2%

Q1 2024

Best reaction

-8.7%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-4.4%-2.7%
Q4 2025+3.0%+11.0%+9.1%
Q3 2025+7.7%+9.1%+11.2%
Q2 2025-5.1%-5.0%-5.5%
Q1 2025-1.1%-2.8%+1.6%
Q4 2024+6.5%+2.0%+12.4%
Q3 2024+1.3%+0.3%-10.5%
Q2 2024-3.9%-0.8%-0.3%
Q1 2024+12.2%+8.3%+10.3%
Q4 2023-8.1%-9.6%-15.3%
Q3 2023-0.9%+2.5%+2.5%
Q2 2023+5.6%+13.2%+11.4%
Q1 2023+0.4%-1.2%-9.2%
Q4 2022-2.1%-2.6%-6.7%
Q3 2022+0.0%+8.7%+6.1%
Q2 2022-0.4%+0.5%-1.9%
Q1 2022-4.7%-7.6%+2.2%
Q4 2021+8.5%+2.7%+4.2%
Q3 2021+4.0%+1.9%-4.1%
Q2 2021-4.8%-4.0%-5.8%
Q1 2021-7.4%-6.2%-7.9%
Q4 2020-1.4%-1.7%-7.7%
Q3 2020-2.5%-1.5%+0.6%
Q2 2020-1.9%-3.5%-0.3%
Q1 2020-2.0%+0.3%-2.5%
Q4 2019-4.9%-2.4%-12.1%
Q3 2019+2.9%+6.3%+14.4%
Q2 2019+6.0%+6.3%+17.5%
Q1 2019-2.8%-2.1%-6.7%
Q4 2018-3.7%-2.5%-1.0%
Q3 2018+2.4%-0.6%+7.5%
Q2 2018-0.3%+1.8%+1.9%
Q1 2018+0.1%+1.6%+1.9%
Q4 2017+0.5%-5.1%-0.5%
Q3 2017-2.1%-3.2%-5.7%
Q2 2017-2.9%-3.6%-6.1%
Q1 2017-1.2%-1.3%-5.9%
Q4 2016+4.9%+4.5%+12.9%
Q3 2016-8.7%-11.5%-8.5%
Q2 2016+2.2%+3.9%+2.6%
Q1 2016-1.7%
Q4 2015+1.5%
Q3 2015-0.9%
Q2 2015+3.0%
Q1 2015+1.9%
Q4 2014-3.2%
Q3 2014+6.7%
Q2 2014+6.0%
Q1 2014-3.2%
Q4 2013+0.5%
Q3 2013+1.8%
Q2 2013-1.0%
Q1 2013-7.5%
Q4 2012-0.8%
Q3 2012+0.8%
Q2 2012+7.6%
Q1 2012+0.2%
Q4 2011-0.8%
Q3 2011+4.9%
Q2 2011-3.0%
Q1 2011-1.5%
Q4 2007+0.7%
Q4 2010+0.7%
Q3 2008+0.7%
Q3 2010-0.9%
Q2 2010-0.4%
Q1 2009+1.5%
Q1 2010+1.2%
Q4 2009+0.5%
Q3 2009+1.6%
Q4 2008+3.8%
Q2 2009+3.8%
Q2 2008+3.8%

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