10-QPeriod: Q2 FY2016

AMGEN INC Quarterly Report for Q2 Ended Jun 30, 2016

Filed July 29, 2016For Securities:AMGN

Summary

Amgen Inc. reported solid financial results for the second quarter and first half of 2016, showcasing revenue and net income growth year-over-year. Total revenues increased by 6% for the quarter and 8% for the first six months, driven by strong performance in key products like Enbrel, Prolia, and Kyprolis. The company demonstrated effective cost management, with operating expenses growing at a slower pace than revenues, leading to a notable increase in operating income (15% for the quarter, 17% for the first half) and net income (13% for the quarter, 15% for the first half). Diluted Earnings Per Share (EPS) also saw a corresponding increase, indicating enhanced profitability for shareholders. Amgen continues to actively return capital to shareholders through dividends and stock repurchases, underscoring its financial health and commitment to shareholder value.

Financial Highlights

54 data points
Beta

Revenue

$5.69B

77.8% Gross Margin

Net Income

$1.87B

32.9% Net Margin

EPS (Diluted)

$2.47

Total Assets

$75.47B

Cash & Equivalents

$2.63B

Free Cash Flow

$2.49B

Financial Statements
Beta
Revenue$5.69B
Cost of Revenue$1.05B
Gross Profit$4.42B
SG&A Expenses$1.29B
Operating Expenses$3.31B
Operating Income$2.38B
Interest Expense$313.00M
Net Income$1.87B
EPS (Basic)$2.49
EPS (Diluted)$2.47
Shares Outstanding (Basic)751.00M
Shares Outstanding (Diluted)756.00M

Key Highlights

  • 1Total revenues grew 5% to $5.47 billion for the second quarter and 6% to $10.71 billion for the first half of 2016, compared to the prior year periods.
  • 2Net income increased by 13% to $1.87 billion for the second quarter and 15% to $3.77 billion for the first half of 2016.
  • 3Diluted EPS rose by 15% to $2.47 for the second quarter and 17% to $4.97 for the first half of 2016.
  • 4Key products like Enbrel, Prolia, and Xgeva showed significant sales growth, contributing to the overall revenue increase.
  • 5Operating expenses were well-managed, growing only 2% for the first half of the year, resulting in improved operating margins.
  • 6Amgen returned $1.2 billion in stock repurchases and paid $1.2 billion in dividends during the first six months of 2016.
  • 7The company is making progress in its pipeline, with regulatory submissions for Romosozumab and positive recommendations for its biosimilar candidate ABP 501.

Frequently Asked Questions

Amgen reported a 5% increase in total revenues to $5.47 billion for the second quarter of 2016, up from $5.23 billion in the same period last year. Net income also grew by 13% to $1.87 billion, and diluted EPS increased by 15% to $2.47.

Revenue growth was primarily driven by strong performance from key products such as Enbrel (up 10%), Prolia (up 30%), and Xgeva (up 15%). Other revenues also saw a substantial increase of 48% due to licensing transactions and royalty income.

Amgen demonstrated strong cost management, with operating expenses increasing by only 2% for the first half of 2016, largely due to ongoing transformation and process improvement efforts. This controlled expense growth, combined with revenue increases, led to a significant 17% rise in operating income and a 15% rise in net income for the first half of the year.

Amgen continues to return capital to shareholders through cash dividends and stock repurchases. In the first six months of 2016, the company repurchased $1.2 billion of its stock and paid $1.2 billion in dividends, reflecting confidence in its future cash flows.