AMGEN INC Reports FY2022 Q4 Earnings Results as of December 31, 2022

Earnings Overview

On January 31 2023, AMGEN INC ($NASDAQ:AMGN) reported their FY2022 Q4 earnings results as of December 31 2022. Their total revenue for the quarter had decreased by 14.7% year over year to USD 1.6 billion, while their net income had decreased by a slight 0.1% to USD 6.8 billion.

Transcripts Simplified

For the full year, cost of sales as a percentage of product sales decreased by 0.5 percentage points, down to 15.9%. Non-GAAP R&D spend in the fourth quarter decreased 2% year-over-year and full year declined 8% year-over-year. Non-GAAP SG&A expenses increased 2% year-over-year in the fourth quarter and were unchanged year-over-year for the full year. Non-GAAP other income and expenses were about $470 million in expense in the fourth quarter and approximately $1.7 billion for the full year. For 2023, Amgen’s revenue guidance is $26.0 billion to $27.2 billion, and non-GAAP earnings per share guidance is $17.40 to $18.60 per share.

The year-over-year comparison for total revenue will not include about $700 million related to COVID-19 antibody revenues, lower amounts of Nplate sales compared to 2022, favorable changes to estimated sales deductions, and the sale of their generics business in Turkey. Product sales are expected to have volume growth driven by strong growth in priority products, TEZSPIRE, EVENITY, Repatha, Prolia, and TAVNEOS, but with mid-single-digit price declines across the portfolio. Neulasta and their oncology biosimilars are expected to drive growth as well.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Amgen Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Amgen Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Amgen Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Amgen Inc are shown below. More…

Price History

The stock opened at $253.9 and closed at $252.4, representing a 0.3% increase from the prior closing price of $251.6. This was a modest but positive result for the company, which had seen a decline in stock prices over the past few weeks. This was attributed to strong sales of the company’s branded drugs, as well as cost-saving measures implemented earlier in the year. The company used this cash flow to pay down its debt and make strategic investments, allowing it to remain financially secure despite the ongoing pandemic.

Overall, AMGEN INC reported good earnings results for the fourth quarter of FY2022. The company’s stock price was up slightly to close out the year, and their revenue, net income, and cash flow all increased compared to one year ago. Despite the difficult economic conditions, AMGEN INC was able to remain financially secure and make smart investments for future growth. Live Quote…

Analysis

GoodWhale’s financial analysis of AMGEN INC reveals that it is classified as a ‘cow’, a type of company that has a track record of paying consistent and sustainable dividends. This makes AMGEN INC attractive to investors who are seeking stable income in the form of dividend payments. Furthermore, the company has a high health score of 8/10, indicating it is capable of paying off debt and funding future operations. Additionally, AMGEN INC is strong in dividend, profitability and medium in asset, but weak in growth. All these factors make it an attractive option for investors seeking stability and regular income. More…

Peers

The competition between Amgen Inc and its competitors is fierce. Amgen Inc is the largest biotechnology company in the world, with a market capitalization of over $100 billion. Its competitors, Gilead Sciences Inc, Eli Lilly and Co, and Biogen Inc, are all large, well-established companies with significant resources. each company is striving to develop the best products and to gain market share. The competition is intense, and each company is working hard to win.

– Gilead Sciences Inc ($NASDAQ:GILD)

Gilead Sciences Inc is a biopharmaceutical company that focuses on the discovery, development, and commercialization of drugs. The company was founded in 1987 and is headquartered in Foster City, California. Gilead Sciences Inc has a market cap of 83.2B as of 2022, a Return on Equity of 24.03%. The company’s key products include HIV/AIDS treatment, hepatitis C treatment, and oncology products. Gilead Sciences Inc also has a pipeline of products in development for various indications, including HIV, hepatitis B, non-alcoholic steatohepatitis, and respiratory syncytial virus.

– Eli Lilly and Co ($NYSE:LLY)

Eli Lilly and Co is a pharmaceutical company headquartered in Indianapolis, Indiana. The company was founded in 1876 by Colonel Eli Lilly. The company develops and markets products in the areas of diabetes, oncology, immunology, neuroscience, and other areas. Lilly has operations in more than 60 countries and sells products in more than 125 countries. Lilly has been one of the world’s leading innovators in the pharmaceutical industry, with products such as Prozac, Zyprexa, and Cialis. The company has a market cap of 316.18B as of 2022 and a Return on Equity of 45.88%.

– Biogen Inc ($NASDAQ:BIIB)

Biogen Inc. is a global biotechnology company. The company is engaged in the discovery, development, manufacturing and commercialization of therapies for the treatment of neurodegenerative diseases, hematologic conditions and autoimmune diseases. Biogen has a market cap of $39.12B as of 2022 and a return on equity of 14.98%. The company’s products include aducanumab, a monoclonal antibody for the treatment of Alzheimer’s disease; SPINRAZA, a therapeutic agent for the treatment of spinal muscular atrophy; and TYSABRI, a monoclonal antibody for the treatment of multiple sclerosis.

Summary

Analysts are mixed on the Q4 results for AMGEN INC, with total revenue decreasing 14.7% year over year. Despite a slight 0.1% decrease year over year in net income, the company’s overall financial performance remains strong. It has solid cash reserves and a strong balance sheet.

Despite the decrease in revenue, analysts remain optimistic about AMGEN INC’s stock price and expect that it will rise in the future due to its strong fundamentals. Investors should continue to monitor the company’s progress as it works to regain growth and profitability.