Unlike Novo, which reported its earnings unexpectedly yesterday, Amgen reported its earnings as scheduled, and the results show once again why we have this high-quality company in our portfolio!
๐๐ฏ๐๐ซ๐๐ฅ๐ฅ ๐๐๐ค๐: ๐๐ง๐จ๐ญ๐ก๐๐ซ ๐๐ญ๐ซ๐จ๐ง๐ ๐๐ฎ๐๐ซ๐ญ๐๐ซ
Amgen delivered an impressive second quarter, with broad-based growth across its portfolio. The company continues to diversify beyond its legacy products, while its key growth drivers are gaining momentum. Management also raised full-year revenue and EPS guidance, highlighting confidence in the business.
๐๐๐ฒ ๐ ๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐๐ข๐ ๐ก๐ฅ๐ข๐ ๐ก๐ญ๐ฌ
Revenue $10.1B (+10% YoY)
Product Sales +9% YoY
Non-GAAP EPS $6.29 (+4% YoY)
Operating Margin 48%
Free Cash Flow $3.5B (+83% YoY)
๐๐ซ๐จ๐ฐ๐ญ๐ก ๐๐ซ๐ข๐ฏ๐๐ซ๐ฌ
Amgen's six key growth drivers increased 26% year over year and now account for approximately 70% of total product sales, demonstrating the successful transformation of the company's portfolio.
๐๐๐ซ๐ข๐๐ข๐๐ ๐๐๐ฆ๐๐ข๐ง๐ฌ ๐ญ๐ก๐ ๐๐จ๐ง๐ -๐๐๐ซ๐ฆ ๐๐ฉ๐ฉ๐จ๐ซ๐ญ๐ฎ๐ง๐ข๐ญ๐ฒ
MariTide continues to be one of Amgen's most important long-term growth projects. The company is advancing multiple Phase 3 programs. If successful, MariTide could become a major player in the rapidly growing obesity market.
๐๐ฎ๐ข๐๐๐ง๐๐ ๐๐๐ข๐ฌ๐๐
Management increased full-year guidance.
Revenue:
Previous: $37.1B โ $38.5B
New: $38.2B โ $39.4B
Non-GAAP EPS
Previous: $21.70 โ $23.10
New: $22.30 โ $23.50
A guidance increase is generally a strong sign of management confidence!
๐๐ข๐ฏ๐ข๐๐๐ง๐
Excellent background for dividend investors. Free cash flow increased dramatically. Dividend raised 6% year over year. Operating margin remains exceptionally strong at 48%. The balance sheet continues to support both growth investments and shareholder returns.
The dividend appears very well covered!
๐๐ฒ ๐๐ข๐๐ฐ
To me, itโs clear: this is just another successful quarter among many. Amgen is in an excellent position. It doesnโt just rely on the many billion-dollar blockbusters it already has; its pipeline is strong and should continue to generate solid revenue for Amgen for many years to come. No wonder the company has reached a new all-time high. We remain invested. $AMGN (Amgen Inc)... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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