Yahoo Finance Amgen Inc (AMGN) Q1 2024 Earnings: Aligns with EPS Projections Amid Revenue Growth and Challenges
Revenue: $7.4 billion, up 22% year-over-year, surpassing estimates of $7.435 billion.
Net Income: Reported a net loss of $113 million, a significant drop from a net income of $2.841 billion in Q1 2023, below estimates of $2.088 billion.
Earnings Per Share (EPS): GAAP loss per share was $0.21, compared to earnings of $5.28 in Q1 2023, below the estimated earnings per share of $3.87.
Free Cash Flow: Generated $0.5 billion, down from $0.7 billion in the same quarter last year.
Operating Margin: GAAP operating margin decreased significantly by 19.0 percentage points to 13.9%.
Product Sales: Total product sales increased by 22%, driven by volume growth of 25%, with significant contributions from Horizon-acquired products.
Dividends: Paid a dividend of $2.25 per share, representing a 6% increase from the previous year.
On May 2, 2024, Amgen Inc (NASDAQ:AMGN) disclosed its financial results for the first quarter of 2024 through its 8-K filing. The company reported a significant revenue increase but faced challenges with higher operating expenses and a GAAP loss per share, primarily due to a mark-to-market loss on equity investments and costs associated with recent acquisitions.
Company Overview
Amgen is a pioneering biotechnology firm, renowned for its innovative human therapeutics. With a diverse portfolio that includes treatments for cancer, heart disease, osteoporosis, inflammatory diseases, and rare diseases, Amgen continues to be at the forefront of medical research and development. The companys recent acquisition of Horizon Therapeutics has expanded its offerings in rare disease treatments, further solidifying its position in the biotech industry.
Financial Performance
Amgen's total revenue for Q1 2024 surged by 22% year-over-year to $7.4 billion, slightly missing the estimated $7.435 billion. This growth was driven by a 25% increase in product volume, with significant contributions from key products like Repatha, TEZSPIRE, and the newly integrated Horizon products such as TEPEZZA. Despite the strong sales performance, Amgen experienced a GAAP loss per share of $0.21, a stark contrast to the GAAP EPS of $5.28 in Q1 2023. This loss was influenced by non-operational factors such as a mark-to-market loss on the BeiGene, Ltd. equity investment. Non-GAAP EPS slightly decreased by 1% to $3.96, aligning closely with analyst expectations of $3.87 per share.
Operational Challenges and Adjustments
The integration of Horizon Therapeutics has introduced significant growth opportunities but also brought substantial costs. Amgen reported increased operating expenses, primarily due to higher amortization from acquired Horizon assets and additional expenses related to the acquisition. These factors contributed to a decrease in both GAAP and non-GAAP operating margins.
Strategic Developments and Future Outlook
Looking ahead, Amgen has updated its full-year 2024 guidance, expecting total revenues between $32.5 billion and $33.8 billion, and projecting a non-GAAP EPS in the range of $19.00 to $20.20. The company continues to invest in its pipeline with promising developments in both oncology and general medicine, including ongoing Phase 3 studies and new treatment launches anticipated in the upcoming periods.
Investor and Market Implications
Amgen's ability to align with EPS projections amidst revenue growth and operational challenges demonstrates resilience and strategic planning. However, investors may be cautious due to the GAAP losses and the costs associated with integrating Horizon Therapeutics. Long-term growth prospects remain strong, supported by Amgens robust product pipeline and strategic acquisitions.
For more detailed financial analysis and future updates on Amgen Inc (NASDAQ:AMGN), stay tuned to GuruFocus.com.
Explore the complete 8-K earnings release (here) from Amgen Inc for further details.
This article first appeared on GuruFocus.
