Summary
Amgen Inc. reported solid revenue growth in the second quarter of 2018, with total revenues increasing by 4% year-over-year to $6.06 billion. This growth was primarily driven by a 10% increase in Rest of World (ROW) product sales and a significant 61% surge in other revenues, largely due to a milestone payment from Novartis for their migraine treatment, AimovigTM. Net income saw a healthy increase of 7% to $2.30 billion, leading to diluted EPS of $3.48, up 20% compared to the prior year, demonstrating improved profitability and effective cost management. The company also executed a substantial stock repurchase program, highlighting its commitment to returning capital to shareholders and a strong cash flow position.
Financial Highlights
55 data pointsBeta
Financial Statements
Beta
| Revenue | $6.06B |
| Cost of Revenue | $1.02B |
| Gross Profit | $4.66B |
| SG&A Expenses | $1.35B |
| Operating Expenses | $3.23B |
| Operating Income | $2.83B |
| Interest Expense | $347.00M |
| Net Income | $2.30B |
| EPS (Basic) | $3.50 |
| EPS (Diluted) | $3.48 |
| Shares Outstanding (Basic) | 656.00M |
| Shares Outstanding (Diluted) | 660.00M |
Key Highlights
- 1Total revenues increased by 4% to $6.06 billion for the three months ended June 30, 2018.
- 2Product sales in Rest of World (ROW) increased by 10% to $1.31 billion.
- 3Other revenues surged by 61% to $380 million, primarily due to a milestone payment from Novartis for AimovigTM.
- 4Net income rose by 7% to $2.30 billion, reflecting strong operational performance.
- 5Diluted Earnings Per Share (EPS) grew significantly by 20% to $3.48.
- 6Amgen repurchased approximately $13.9 billion of its stock during the six months ended June 30, 2018, indicating a strong focus on capital return.
- 7The company's effective tax rate decreased to 13.3% for the quarter, influenced by U.S. corporate tax reform.