On April 23, Amgen (NASDAQ:AMGN) released first-quarter earnings for the period ended March 31.

  • Revenues rose 14.6%, backed by growth in revenues from Aranesp.
  • In March, the company announced the cancellation of a late-stage study involving its colon cancer drug, Vectibix.
  • Osteoporosis drug denosumab successfully completed a phase 3 study.
  • Amgen spent over $500 million on share repurchases in the quarter. The company has another $6 billion remaining that it can spend on share buybacks.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$3,687

$3,217

14.6%

Net Profit

$1,111

$1,001

11.0%

EPS

$0.94

$0.82

14.6%

Diluted Shares

1,177

1,218

(3.4%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

83.9%

82.8%

1.1

Operating Margin

38.0%

38.4%

(0.4)

Net Margin

30.1%

31.1%

(1.0)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$4,837

$5,047*

(4.2%)

Accounts Rec.

$2,157

$1,794

20.2%

Inventory

$2,115

$1,273

66.1%

*Restricted cash is excluded.

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable*

$4,507

$3,620

24.5%

Long-Term Debt**

$7,134

$7,198

(0.1%)

*Accounts payable includes accrued liabilities.
**Long-term debt includes convertible debts.

The balance sheet reflects the company's health.

Cash Flow Highlights

A statement of cash flows was not provided. (Lame!)

Free cash flow is a Fool's best friend.

Related Foolishness:

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