Amgen (AMGN) Q4 2023 earnings summary

Executive summary

• Q4 product sales grew 20% on 23% volume growth; excluding Horizon sales, growth was 5% on 9% volume growth. FY product sales rose 9%, with 18 brands recording full-year sales.

• FY non-GAAP EPS increased 5% to $18.65; 2024 guidance calls for revenue of $32.4B–$33.8B and non-GAAP EPS of $18.90–$20.30.

• Pipeline catalysts include more than a dozen anticipated 2024 milestones, including tarlatamab and BLINCYTO reviews and late-2024 MariTide Phase 2 data.

Financial highlights

• Q4 revenue was $8.196B (+20% YoY), including product sales of $7.833B (+20%) and other revenue of $363M (+26%).

• Q4 adjusted operating income was $3.660B (+22%), adjusted net income $2.543B (+15%) and adjusted EPS $4.71 (+15%).

• FY revenue was $28.190B (+7%), product sales $26.910B (+9%), adjusted operating income $13.399B (+5%), adjusted net income $10.034B (+5%) and adjusted EPS $18.65 (+5%).

• GAAP net income was $767M and diluted EPS $1.42 in Q4; FY GAAP net income was $6.717B and diluted EPS $12.49.

Outlook and guidance

• 2024 guidance: revenue $32.4B–$33.8B; GAAP EPS $8.42–$9.87; non-GAAP EPS $18.90–$20.30; GAAP tax rate 11.5%–13.0%; non-GAAP tax rate 16.0%–17.0%.

• 2024 capital expenditures are expected to be ~$1.1B; share repurchases are capped at $500M.

• More than a dozen pipeline milestones are anticipated in 2024, including MariTide Phase 2 data in late 2024; tarlatamab and BLINCYTO PDUFA dates are June 12 and June 21, respectively.

• Q1 sales are expected to reflect historical Otezla and Enbrel seasonality; established-product price and volume declines are expected to continue.