Biotech
Tuesday, April 16th, 2024 5:19 pm EDT
Key Points
- Johnson & Johnson reported first-quarter adjusted earnings surpassing Wall Street expectations, driven by a surge in sales in its medical devices business, particularly due to rebounding demand for nonurgent surgeries among older adults.
- Despite the strong performance, J&J’s total revenue for the period was largely in line with estimates, leading to a slight decline in the company’s shares during early trading.
- Key financial metrics for the first quarter included adjusted earnings per share of $2.71 (versus an expected $2.64) and total revenue of $21.38 billion (slightly below the expected $21.4 billion), with the company’s medical devices unit generating sales of $7.82 billion, up more than 4% year-over-year.
Johnson & Johnson (J&J) reported first-quarter adjusted earnings exceeding Wall Street expectations, with a surge in sales in its medical devices division driving this performance. The division, offering devices for surgeries, orthopedics, and vision, experienced heightened demand for nonurgent surgeries among older adults, resulting in elevated procedure levels post-pandemic. Despite consumer retrenchment in other areas, J&J observed sustained demand for health-related products. Total revenue for the quarter was $21.38 billion, slightly below expectations. J&J’s net income for the quarter was $5.35 billion, with adjusted earnings per share at $2.71. The company also narrowed its full-year guidance, expecting sales of $88 billion to $88.4 billion and adjusted earnings of $10.57 to $10.72 per share. J&J declared an increased quarterly dividend of $1.24 per share. The medical devices unit, poised for growth following acquisitions like Shockwave Medical, saw revenues rise by over 4%. However, sales of vision products declined by 3.3%, attributed to a contraction in U.S. distributor inventory. J&J’s pharmaceutical sales grew around 1%, excluding Covid vaccine sales, driven by drugs like Darzalex and Erleada. Yet, Stelara sales remained relatively flat due to increased competition from biosimilar alternatives. Amid investor concern over talc-related lawsuits, J&J faces ongoing legal challenges, with settlements underway but litigation yet to be resolved.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/16/johnson-johnson-jnj-earnings-q1-2024.html
