A Tablet of Amgen: Fool by Numbers

On Monday, biopharmaceutical company Amgen (Nasdaq: AMGN  ) released Q3 earnings for the period ended Sept. 30.

• Revenues just barely missed the analyst consensus, while EPS fell short by $0.04.
• Revenues increased 14.5%, driven by a 14% increase in U.S. product sales and an 18% increase in international sales.
• Amgen's EPS climbed 22.1% because of an increase in net profit and a 5.7% decrease in diluted share count.
• Long-term debt increased 229% because $2.5 billion of convertible notes due in 2011 and $2.5 billion of convertible notes due in 2013 were issued.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$3,616	$3,612	$3,154	14.5%
Net Profit	--	$1,102	$967	14.0%
EPS	$0.98	$0.94	$0.77	22.1%
Diluted Shares	--	1,178	1,249	(5.7%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	86.46%	82.50%	3.96
Operating Margin	36.60%	41.15%	(4.55)
Net Margin	30.51%	30.66%	(0.15)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$5,781	$5,551	4.1%
Accounts Rec.	$2,124	$1,664	27.6%
Inventory	$1,711	$1,059	61.6%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable*	$4,515	$3,352	34.7%
Long-Term Debt	$9,006	$4,070	121.3%

*Accounts payable includes accrued liabilities

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q3 2006	Q3 2005	Change
Cash From Ops.	N/A	$1,442	N/A
Capital Expenditures	$376	$199	88.9%
Free Cash Flow	N/A	$1,243	N/A

Find out why Fools always follow the money.

Related companies:

• Biogen Idec (Nasdaq: BIIB  )
• Genentech (NYSE: DNA  )
• Genzyme (Nasdaq: GENZ  )

Related Foolishness:

• Amgen's Ho-Hum Quarter
• Amgen Secures Its Future
• Amgen's Little Helpers
• DNA Sequencing Sprouts Small Roots

Biogen Idec is aMotley Fool Stock Advisorselection. What other stocks are at the top of Tom and David Gardner's list? Be our guest at the Stock Advisor website for 30 days and find out.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.