Johnson & Johnson (JNJ) Q1 2024 Earnings
The logo is displayed on an entrance sign to the Johnson & Johnson campus in Irvine, California, on August 28, 2019.
Mark Ralston | AFP | Getty Images
johnson & johnson on tuesday report First-quarter adjusted earnings exceeded Wall Street expectations as a result of sales. Medical equipment business It increased rapidly.
Meanwhile, the company's total revenue for the period was roughly in line with expectations.
J&J's medical technology division provides surgical, orthopedic, and vision devices.The company benefits from demand recovery Postponing non-urgent surgeries for older people new coronavirus pandemic. This increase in demand has been observed by health insurance companies such as: humana, united health group and Elevance Health.
J&J CFO Joseph Wolk told CNBC.squawk boxHe said Tuesday that while consumers may be holding back in other areas, “they don't want to compromise on their health, their mobility, their ability to live a fulfilling life.” The company added that the level of procedures has since increased. Because of the pandemic, “I don't see it going back.”
Still, the company's shares closed down more than 1% on Tuesday.
Here's what J&J reported: 1st quarter Comparison with Wall Street expectations based on analyst survey by LSEG:
- Earnings per share: Adjusted $2.71 vs. expected $2.64
- Revenue: $21.38 billion vs. $21.4 billion expected
J&J's results are seen as a bellwether for the broader medical field.
The company reported total sales of $21.38 billion in the first three months of 2024, an increase of more than 2% from the same quarter in 2023.
The pharmaceutical giant posted net income of $5.35 billion, or $2.20 per share, in the quarter. Compared to that, net loss In the year-ago period, sales were $491 million, or 19 cents per share. At the time, J&J was recording talc baby powder debt and charges related to the spinoff of its consumer health division. Kenview.
Adjusted earnings per share excluding certain items for the first quarter of 2024 was $2.71.
J&J also trimmed its full-year outlook for this year. The company now expects sales to be between $88 billion and $88.4 billion. This compares with previous expectations of $87.8 billion to $88.6 billion.
J&J expects adjusted earnings per share to be between $10.57 and $10.72. This compares to previous guidance of $10.55 to $10.75 per share.
Separately, J&J on Tuesday increase The quarterly dividend increased 4.2% to $1.24 per share from $1.19. This marks the company's 62nd consecutive year of increasing dividends. Dividends will be paid on June 4th.
medical equipment unit
The results were announced weeks after J&J's massive $13.1 billion acquisition of the cardiac device company. shockwave medical — Part of the push into the cardiovascular space. The companies say the partnership will position J&J as a leader in four rapidly growing cardiovascular technology areas.
J&J expects the deal to close in the middle of this year, which will impact the company's full-year outlook, executives said on an earnings call Tuesday.
J&J has acquired two other cardiac device companies in the past two years, spending $16.6 billion to buy Abiomed and $400 million to buy private company Laminar.
The deals are also aimed at strengthening J&J's medical devices business after it is separated from its consumer health division. Kenview last year.
J&J's medical devices business had first-quarter sales of $7.82 billion, an increase of more than 4% from the same period last year. Wall Street had expected revenue of $7.87 billion, according to estimates compiled by Street Accounts.
J&J said the Abiomed acquisition fueled the year-over-year increase. J&J says this growth has also led to electrophysiology products that assess the heart's electrical system and help doctors understand the causes of abnormal heart rhythms.
Wound closure products and devices for orthopedic trauma and severe injuries of the skeletal and muscular systems also contributed.
However, sales of the division's vision products, which include contact lenses, fell 3.3% to $1.26 billion in the quarter. Wall Street had expected Vision's sales to be $1.33 billion.
J&J executives said on a conference call that the decline was primarily due to a “shrinking” of contact lens inventory at U.S. distributors. However, the company added that it expects Vision to deliver single-digit growth this year and is confident of “significantly improved performance in its business” going forward.
Other segments
Meanwhile, J&J reported pharmaceutical sales of $13.56 billion, a year-over-year growth of about 1%. Excluding sales of unpopular coronavirus vaccines, the pharmaceutical division's revenue rose nearly 7%.
In the fourth quarter, sales of J&J's coronavirus vaccine were zero in the United States, but international sales were $25 million.
Analysts had expected the unit's sales to be $13.5 billion, according to Street Accounts. The business, also known as “Innovative Medicine,” focuses on developing medicines across a variety of disease areas.
The company said growth was driven by sales of the biologic drug Darzalex for the treatment of multiple myeloma and the prostate cancer drug Erleada. J&J's Carvykti, a cell therapy approved for certain blood cancers, and other oncology treatments also contributed to the increase.
But first-quarter sales of the company's blockbuster drug Stelara, used to treat several chronic and potentially disabling conditions such as Crohn's disease, were relatively low compared with the same period last year. It remained flat.
Stelara brought in revenue of $2.45 billion in the quarter. Wall Street had expected sales of $2.61 billion.
J&J began losing patent protection on Stelara late last year, opening the door for cheaper biosimilar competitors to enter the market.However, the company entered into a settlement agreement amgen and other drug companies plan to delay the launch of some Stelara counterfeit products to 2025.
talc debt
J&J's first quarter results come amid investor anxiety over tens of thousands of lawsuits alleging that the company's talc-based products were contaminated with the carcinogen asbestos, causing ovarian cancer and several deaths. Announced.
Those products, including J&J's namesake baby powder, are now under the Kenvue umbrella. However, J&J will assume all talc-related debt arising in the United States and Canada.
Notably, a federal judge ruled in March that J&J can challenge scientific evidence linking its talc products to ovarian cancer. The federal lawsuit, which consolidates 53,000 lawsuits, could become chaotic.
Wolk on Tuesday called the ruling a “very important development” and said the evidence being presented against J&J is “junk science.” But he noted that it is difficult to provide a timeline for when the company will reach a broader resolution of its ongoing litigation.
In January, J&J announced that it had reached the following goals: Provisional payment to solve investigation More than 40 states have filed claims that the company misled patients. safety Characteristics of talcum-based products.The company will pay $700 million to resolve the investigation, Wolk said. told the Wall Street Journal at that time.
Last year, J&J set aside about $400 million to settle consumer protection claims in U.S. states.
Notably, the settlement does not resolve the lawsuits, some of which are scheduled for trial this year.
Summarize this content to 100 words The logo is displayed on an entrance sign to the Johnson & Johnson campus in Irvine, California, on August 28, 2019.Mark Ralston | AFP | Getty Imagesjohnson & johnson on tuesday report First-quarter adjusted earnings exceeded Wall Street expectations as a result of sales. Medical equipment business It increased rapidly.Meanwhile, the company's total revenue for the period was roughly in line with expectations.J&J's medical technology division provides surgical, orthopedic, and vision devices.The company benefits from demand recovery Postponing non-urgent surgeries for older people new coronavirus pandemic. This increase in demand has been observed by health insurance companies such as: humana, united health group and Elevance Health.J&J CFO Joseph Wolk told CNBC.squawk boxHe said Tuesday that while consumers may be holding back in other areas, “they don't want to compromise on their health, their mobility, their ability to live a fulfilling life.” The company added that the level of procedures has since increased. Because of the pandemic, “I don't see it going back.”Still, the company's shares closed down more than 1% on Tuesday.Here's what J&J reported: 1st quarter Comparison with Wall Street expectations based on analyst survey by LSEG:Earnings per share: Adjusted $2.71 vs. expected $2.64Revenue: $21.38 billion vs. $21.4 billion expectedJ&J's results are seen as a bellwether for the broader medical field.The company reported total sales of $21.38 billion in the first three months of 2024, an increase of more than 2% from the same quarter in 2023. The pharmaceutical giant posted net income of $5.35 billion, or $2.20 per share, in the quarter. Compared to that, net loss In the year-ago period, sales were $491 million, or 19 cents per share. At the time, J&J was recording talc baby powder debt and charges related to the spinoff of its consumer health division. Kenview. Adjusted earnings per share excluding certain items for the first quarter of 2024 was $2.71.J&J also trimmed its full-year outlook for this year. The company now expects sales to be between $88 billion and $88.4 billion. This compares with previous expectations of $87.8 billion to $88.6 billion. J&J expects adjusted earnings per share to be between $10.57 and $10.72. This compares to previous guidance of $10.55 to $10.75 per share.Separately, J&J on Tuesday increase The quarterly dividend increased 4.2% to $1.24 per share from $1.19. This marks the company's 62nd consecutive year of increasing dividends. Dividends will be paid on June 4th.medical equipment unitThe results were announced weeks after J&J's massive $13.1 billion acquisition of the cardiac device company. shockwave medical — Part of the push into the cardiovascular space. The companies say the partnership will position J&J as a leader in four rapidly growing cardiovascular technology areas. J&J expects the deal to close in the middle of this year, which will impact the company's full-year outlook, executives said on an earnings call Tuesday.J&J has acquired two other cardiac device companies in the past two years, spending $16.6 billion to buy Abiomed and $400 million to buy private company Laminar. The deals are also aimed at strengthening J&J's medical devices business after it is separated from its consumer health division. Kenview last year.J&J's medical devices business had first-quarter sales of $7.82 billion, an increase of more than 4% from the same period last year. Wall Street had expected revenue of $7.87 billion, according to estimates compiled by Street Accounts.J&J said the Abiomed acquisition fueled the year-over-year increase. J&J says this growth has also led to electrophysiology products that assess the heart's electrical system and help doctors understand the causes of abnormal heart rhythms. Wound closure products and devices for orthopedic trauma and severe injuries of the skeletal and muscular systems also contributed. However, sales of the division's vision products, which include contact lenses, fell 3.3% to $1.26 billion in the quarter. Wall Street had expected Vision's sales to be $1.33 billion. J&J executives said on a conference call that the decline was primarily due to a “shrinking” of contact lens inventory at U.S. distributors. However, the company added that it expects Vision to deliver single-digit growth this year and is confident of “significantly improved performance in its business” going forward.Other segmentsMeanwhile, J&J reported pharmaceutical sales of $13.56 billion, a year-over-year growth of about 1%. Excluding sales of unpopular coronavirus vaccines, the pharmaceutical division's revenue rose nearly 7%.In the fourth quarter, sales of J&J's coronavirus vaccine were zero in the United States, but international sales were $25 million.Analysts had expected the unit's sales to be $13.5 billion, according to Street Accounts. The business, also known as “Innovative Medicine,” focuses on developing medicines across a variety of disease areas.CNBC's health insurance is even better.The company said growth was driven by sales of the biologic drug Darzalex for the treatment of multiple myeloma and the prostate cancer drug Erleada. J&J's Carvykti, a cell therapy approved for certain blood cancers, and other oncology treatments also contributed to the increase.But first-quarter sales of the company's blockbuster drug Stelara, used to treat several chronic and potentially disabling conditions such as Crohn's disease, were relatively low compared with the same period last year. It remained flat.Stelara brought in revenue of $2.45 billion in the quarter. Wall Street had expected sales of $2.61 billion.J&J began losing patent protection on Stelara late last year, opening the door for cheaper biosimilar competitors to enter the market.However, the company entered into a settlement agreement amgen and other drug companies plan to delay the launch of some Stelara counterfeit products to 2025.talc debtJ&J's first quarter results come amid investor anxiety over tens of thousands of lawsuits alleging that the company's talc-based products were contaminated with the carcinogen asbestos, causing ovarian cancer and several deaths. Announced.Those products, including J&J's namesake baby powder, are now under the Kenvue umbrella. However, J&J will assume all talc-related debt arising in the United States and Canada.Notably, a federal judge ruled in March that J&J can challenge scientific evidence linking its talc products to ovarian cancer. The federal lawsuit, which consolidates 53,000 lawsuits, could become chaotic.Wolk on Tuesday called the ruling a “very important development” and said the evidence being presented against J&J is “junk science.” But he noted that it is difficult to provide a timeline for when the company will reach a broader resolution of its ongoing litigation.In January, J&J announced that it had reached the following goals: Provisional payment to solve investigation More than 40 states have filed claims that the company misled patients. safety Characteristics of talcum-based products.The company will pay $700 million to resolve the investigation, Wolk said. told the Wall Street Journal at that time.Last year, J&J set aside about $400 million to settle consumer protection claims in U.S. states.Notably, the settlement does not resolve the lawsuits, some of which are scheduled for trial this year. Don't miss exclusive information on CNBC PRO
https://www.cnbc.com/2024/04/16/johnson-johnson-jnj-earnings-q1-2024.html Johnson & Johnson (JNJ) Q1 2024 Earnings
