Summary
Amgen Inc. reported a notable increase in total revenues for the second quarter of 2024, reaching $8.4 billion, a 20% rise compared to the same period in the prior year. This growth was primarily driven by a significant 20% increase in product sales, largely attributable to the successful integration of Horizon Therapeutics and strong volume growth across key products. Despite the top-line expansion, operating income and net income experienced a decline due to a substantial increase in operating expenses, primarily driven by higher amortization related to the Horizon acquisition and increased R&D and SG&A expenses. Diluted EPS saw a corresponding decrease. The company's balance sheet shows a decrease in cash and cash equivalents to $9.3 billion from $10.9 billion at the end of 2023, alongside a reduction in total assets and stockholders' equity. Long-term debt also decreased. Amgen continued its commitment to capital allocation through dividend payments, though no shares were repurchased during the first half of 2024. The company remains focused on investing in innovation and managing its debt.
Financial Highlights
53 data points| Revenue | $8.39B |
| Cost of Revenue | $3.24B |
| Gross Profit | $5.15B |
| SG&A Expenses | $1.78B |
| Operating Expenses | $6.48B |
| Operating Income | $1.91B |
| Interest Expense | $808.00M |
| Net Income | $746.00M |
| EPS (Basic) | $1.39 |
| EPS (Diluted) | $1.38 |
| Shares Outstanding (Basic) | 537.00M |
| Shares Outstanding (Diluted) | 541.00M |
Key Highlights
- 1Total revenues increased by 20% year-over-year to $8.4 billion for the second quarter of 2024, driven by a 20% increase in product sales.
- 2Operating income decreased by 29% to $1.9 billion, and net income fell by 46% to $746 million, primarily due to a 51% increase in operating expenses.
- 3Diluted Earnings Per Share (EPS) decreased by 46% to $1.38 for the quarter.
- 4The acquisition of Horizon Therapeutics contributed significantly to product sales, with $1.1 billion in the current quarter.
- 5Key products like Prolia, Repatha, TEZSPIRE, and the newly acquired TEPEZZA and KRYSTEXXA showed strong sales growth.
- 6Cost of Sales as a percentage of product sales increased significantly to 40.2% from 27.1% in the prior year, largely due to amortization of acquisition-related assets.
- 7Amgen maintained its dividend payments, declaring a quarterly cash dividend of $2.25 per share, but reported no share repurchases in the first half of 2024, with $7.0 billion authorization remaining.