NASDAQ$AMGN

Amgen Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Amgen's financial performance for Q3 2020 showcased strong revenue growth and earnings per share, driven by increased volume growth and strategic acquisitions.

Amgen reported a 12% increase in total revenues to $6.4 billion for the third quarter of 2020, driven by higher volume growth. GAAP EPS increased by 5% to $3.43, while non-GAAP EPS increased by 19% to $4.37. The company generated $3.2 billion in free cash flow.

  • Total revenues increased by 12% to $6.4 billion compared to Q3 2019, driven by volume growth.
  • GAAP EPS increased 5% to $3.43, and non-GAAP EPS increased 19% to $4.37.
  • Free cash flow remained consistent at $3.2 billion compared to the same period last year.
  • 2020 total revenue guidance narrowed to $25.1-$25.5 billion, and EPS guidance was revised to $11.53-$11.93 on a GAAP basis and $15.80-$16.15 on a non-GAAP basis.

Headline financials

Total Revenue

$6.42B

Previous: $5.74B+12.0%
EPS (adj)

$4.37

Previous: $3.66+19.4%
Capital Expenditures

-$435M

Previous: -$430M-1.2%
Free Cash Flow

$1.59B

Previous: $1.54B+3.1%
Net Income

$2.02B

Previous: $1.97B+2.7%
Operating Income

$2.45B

Previous: $2.48B-0.9%
Gross Profit

$4.86B

Previous: $4.7B+3.4%
Cash & Equivalents

$9.09B

Previous: $11.4B-20.4%
Total Assets

$64.6B

Previous: $59.5B+8.6%

Revenue & EPS history

Amgen · Revenue · Quarterly

$6.42B

Q3 2020+12%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Amgen · $5.58B total across 16 segments · Q3 2020

  • Enbrel
    $1.33B-3.0%
  • Prolia
    $701M+11.3%
  • Neulasta
    $555M-21.9%
  • Otezla
    $538M
  • XGEVA
    $481M+1.1%
  • Aranesp
    $384M-15.0%
  • KYPROLIS
    $260M-2.3%
  • MVASI
    $231M
  • Nplate
    $212M+8.7%
  • Repatha
    $205M+22.0%
  • Vectibix
    $193M-1.5%
  • Parsabiv
    $183M+16.6%
  • BLINCYTO
    $89M+4.7%
  • Other products
    $83M-2.4%
  • AMJEVITA/AMGEVITA
    $80M+31.1%
  • EVENITY
    $59M

Forward guidance

Amgen narrowed its total revenue guidance for 2020 to $25.1-$25.5 billion. The company revised its EPS guidance to $11.53-$11.93 on a GAAP basis and $15.80-$16.15 on a non-GAAP basis.

Tailwinds

  • Total revenues are expected to be in the range of $25.1 billion to $25.5 billion.
  • GAAP EPS is projected to be in the range of $11.53 to $11.93.
  • Non-GAAP EPS is expected to be in the range of $15.80 to $16.15.
  • Capital expenditures are estimated to be approximately $600 million.
  • Quarterly dividend is maintained at $1.60 per share.

Headwinds

  • Share repurchases are expected to be at the lower end of the previous guidance of $3 billion to $5 billion.
  • The company anticipates continued quarter-to-quarter variability due to the pandemic.
  • Expected decline in year-over-year growth rates for Prolia in Q4 compared to pre-COVID-19 trends.
  • U.S. sales of Parsabiv were negatively impacted late in Q3, and this trend is expected to continue in Q4.
  • Neulasta pricing and volume trends are expected to continue to decline.

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 Q3 2020

Historical avgQ3 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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