Amgen (AMGN) has reported a 9 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $2,071 million, or $2.79 a share in the quarter, compared with $1,900 million, or $2.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2,333 million, or $3.15 a share compared with $2,203 million or $2.90 a share, a year ago. Revenue during the quarter went down marginally by 1.14 percent to $5,464 million from $5,527 million in the previous year period. Gross margin for the quarter expanded 19 basis points over the previous year period to 81.77 percent. Total expenses were 52.58 percent of quarterly revenues, down from 56.54 percent for the same period last year. This has led to an improvement of 396 basis points in operating margin to 47.42 percent.
Operating income for the quarter was $2,591 million, compared with $2,402 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2,995 million compared to $2,859 million in the prior year period. At the same time, adjusted operating margin improved 309 basis points in the quarter to 54.81 percent from 51.73 percent in the last year period.
"We are well positioned for the long term with our newer products demonstrating volume growth around the world and our tight operational expense management of the Company," said Robert A. Bradway, chairman and chief executive officer. "With robust Repatha® (evolocumab) outcomes data, we are working with payers to improve access to this important therapy for patients at risk for heart attacks and strokes."
Amgen expects revenue to be in the range of $22,300 million to $23,100 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $10.64 to $11.32. For financial year 2017, the company projects diluted earnings per share to be in the range of $12 to $12.60 on adjusted basis.
Operating cash flow improves
Amgen has generated cash of $2,385 million from operating activities during the quarter, up 24.54 percent or $470 million, when compared with the last year period. The company has spent $157 million cash to meet investing activities during the quarter as against cash outgo of $4,390 million in the last year period.
The company has spent $2,111 million cash to carry out financing activities during the quarter as against cash inflow of $1,227 million in the last year period.
Cash and cash equivalents stood at $3,358 million as on Mar. 31, 2017, up 15.95 percent or $462 million from $2,896 million on Mar. 31, 2016.
Working capital increases
Amgen has recorded an increase in the working capital over the last year. It stood at $35,933 million as at Mar. 31, 2017, up 6.68 percent or $2,250 million from $33,683 million on Mar. 31, 2016. Current ratio was at 4.41 as on Mar. 31, 2017, down from 4.95 on Mar. 31, 2016.
Days sales outstanding went up to 51 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 130 days for the quarter compared with 224 days for the previous year period.
Debt remains almost stable
Amgen has recorded a decline in total debt over the last one year. It stood at $34,092 million as on Mar. 31, 2017, down 0.63 percent or $215 million from $34,307 million on Mar. 31, 2016. Total debt was 43.79 percent of total assets as on Mar. 31, 2017, compared with 45.67 percent on Mar. 31, 2016. Debt to equity ratio was at 1.11 as on Mar. 31, 2017, down from 1.20 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 7.95 for the quarter from 8.17 for the same period last year.
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