Summary
Amgen Inc. (AMGN) filed an 8-K on October 27, 2016, to report its unaudited financial results for the three and nine months ended September 30, 2016. This filing primarily details the company's operational and financial performance, including the use of non-GAAP financial measures to provide a clearer view of ongoing business operations. Investors should note that Amgen presented non-GAAP earnings per share, operating income, operating margin, tax rate, net income, and operating expenses, along with Free Cash Flow (FCF). These non-GAAP figures exclude items such as acquisition-related expenses (primarily amortization of purchased intangibles), restructuring costs, and certain legal settlements, which are considered outside the ordinary course of business. The company uses these metrics to facilitate comparison of performance across periods and believes they offer valuable supplementary information for investors seeking to understand the company's underlying profitability and cash generation capabilities.
Key Highlights
- 1Amgen reported its unaudited financial results for the third quarter and the first nine months of 2016.
- 2The company utilized non-GAAP financial measures, including non-GAAP EPS and Free Cash Flow (FCF), for enhanced investor understanding.
- 3Key adjustments to GAAP results for non-GAAP reporting include acquisition-related expenses (amortization of intangibles), restructuring costs, and legal settlements.
- 4Amgen believes these non-GAAP measures provide a more meaningful comparison of ongoing business operations across different periods.
- 5Free Cash Flow (FCF) was also provided as an additional measure of the company's liquidity.
- 6The filing includes reconciliations of non-GAAP measures to their most directly comparable GAAP financial measures within the press release (Exhibit 99.1).