Johnson & Johnson’s logo is displayed on a sign at the entrance to its campus in Irvine, California, on August 28, 2019.
Mark Ralston | AFP | Getty Images
Johnson & Johnson Tuesday report First-quarter adjusted earnings beat Wall Street forecasts as sales Medical equipment business Soaring.
Meanwhile, the company’s total revenue for the period was largely in line with expectations.
Johnson & Johnson’s medical technology segment provides surgical, orthopedic and vision equipment. The company has benefited from rebounding demand for non-urgent surgeries among seniors, who had put off those surgeries during the coronavirus pandemic.Health insurance companies such as these have observed an increase in demand humana, UnitedHealth Group and high health.
Johnson & Johnson Chief Financial Officer Joseph Wolk told CNBC’s “Squawk Box” on Tuesday that consumers may be holding back in other areas, but “don’t want to compromise when it comes to health, mobility and the ability to live a fulfilling life.” He added He said the company’s procedures had improved following the pandemic and “we have not seen any backtracking.”
The following is a report from Johnson & Johnson (J&J) Season one Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $2.71, expected $2.64
- income: US$21.38 billion, expected US$21.4 billion
Johnson & Johnson’s financial performance is considered a bellwether for the broader healthcare industry.
The company reported total sales of $21.38 billion in the first three months of 2024, up more than 2% from the same quarter in 2023.
The pharmaceutical giant’s net profit for the quarter was $5.35 billion, or $2.20 per share. This compares with a net loss of $491 million, or 19 cents per share, a year earlier.At the time, Johnson & Johnson recorded costs related to its talc baby powder liabilities and the spinoff of its consumer health unit kenviere.
Excluding certain items in the first quarter of 2024, adjusted earnings per share were $2.71.
Johnson & Johnson also narrowed its full-year guidance for the year. The company now expects sales of $88 billion to $88.4 billion. This compares with previous forecasts of $87.8 billion to $88.6 billion.
Johnson & Johnson expects adjusted earnings per share of $10.57 to $10.72. That compares with previous guidance of $10.55 to $10.75 per share.
Johnson & Johnson separately said on Tuesday that it would Increase Its quarterly dividend was $1.24 per share, an increase of 4.2% from $1.19 per share. The company said this marks the 62nd consecutive year it has increased its dividend. The dividend will be paid on June 4.
Medical equipment unit
The results come just weeks after Johnson & Johnson spent $13.1 billion to acquire the heart device company shockwave medical ——This is part of its expansion into the cardiovascular field. Both companies said the deal would make Johnson & Johnson a leader in four fast-growing cardiovascular technology areas.
Johnson & Johnson has acquired two other heart device companies in the past two years, paying $16.6 billion for Abiomed and $400 million for privately held Laminar.
The deals are also aimed at strengthening Johnson & Johnson’s medical devices business after it separates from its consumer health unit kenviere last year.
Johnson & Johnson’s medical device business achieved sales of US$7.82 billion in the first quarter, an increase of more than 4% compared with the same period last year. Wall Street expected revenue of $7.87 billion, according to StreetAccount estimates.
Johnson & Johnson said its acquisition of Abiomed drove annual growth. Growth also comes from electrophysiology products, which assess the heart’s electrical system and help doctors understand the cause of abnormal heart rhythms, J&J said.
Wound closure products and devices for orthopedic trauma or severe injuries to the skeletal or muscular systems and contact lenses also contributed.
Other market segments
At the same time, Johnson & Johnson reported drug sales of $13.56 billion, an increase of about 1% from the same period last year. Excluding sales of the unpopular COVID-19 vaccine, pharmaceutical unit revenue rose nearly 7%.
There were no U.S. sales in the fourth quarter of the Johnson & Johnson Covid vaccine, which brought in $25 million in international revenue.
Analysts expected sales of $13.5 billion for the segment, according to StreetAccount. The business, also known as “Innovative Medicine,” focuses on developing drugs in different disease areas.
The company said growth was driven by sales of biologic Darzalex, used to treat multiple myeloma, and prostate cancer treatment Erleada. Johnson & Johnson’s Carvykti, a cell therapy approved to treat certain blood cancers, and other oncology treatments are also driving the growth.
But first-quarter sales of the company’s blockbuster drug Stelara, used to treat several chronic and potentially disabling conditions including Crohn’s disease, were relatively flat compared with the same period last year.
Stelara had sales of $2.45 billion this quarter. Wall Street expected revenue of $2.61 billion.
Johnson & Johnson began losing patent protection on Stelara late last year, opening the door for cheaper biosimilar rivals to enter the market.However, the company has Amgen and other drugmakers have delayed the launch of some generic versions of Stelara until 2025.
Talcum powder liabilities
Johnson & Johnson’s first-quarter results come as investors fret over tens of thousands of lawsuits claiming the company’s talc products were contaminated with the carcinogen asbestos, causing ovarian cancer and multiple deaths.
Those products, including Johnson & Johnson’s namesake baby powder, are now owned by Kenvue. But Johnson & Johnson will assume all talc-related liability arising in the United States and Canada.
Notably, a federal judge ruled in March that Johnson & Johnson can challenge scientific evidence linking its talc products to ovarian cancer, potentially disrupting a case involving 53,000 lawsuits pending in federal court.
Volcker on Tuesday called the ruling a “very significant development” and said the evidence against J&J was “junk science.” But he noted that it was difficult to provide a timeline for when the company would reach a broad resolution in the ongoing litigation.
In January, Johnson & Johnson said it had reached Temporary solution solve a investigation More than 40 states accuse the company of misleading patients Safety its talc products.The company will pay $700 million to resolve the investigation, Chief Financial Officer Joseph Wolk said told the Wall Street Journal then.
Last year, Johnson & Johnson set aside about $400 million to resolve consumer protection claims in U.S. states.
Notably, the settlement does not resolve the lawsuits, some of which are expected to go to trial this year.
Johnson & Johnson will hold an earnings call with investors at 8:30 a.m. ET on Tuesday.
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