Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Johnson & Johnson shares rise on earnings beat despite mixed outlook
(Sharecast News) - Johnson & Johnson's stock was in the green on Wednesday, after the pharmaceutical giant reported second-quarter earnings and sales that surpassed analysts' expectations, largely driven by its innovative medicines segment. The New Brunswick, New Jersey-based company revealed a mixed outlook for the future, however, raising its guidance for operational sales due to an "improved performance", but lowering its adjusted earnings per share (EPS) forecast.
It attributed that adjustment to a number of factors, including the recent $13bn acquisition of Shockwave Medical.
For the second quarter, Johnson & Johnson's net income declined to $4.69bn, or $1.93 per share, from $5.14bn, or $2.05 per share, in the same period last year.
However, excluding non recurring items, adjusted earnings per share increased to $2.82, surpassing the FactSet consensus of $2.71.
The firm reported a 4.3% rise in sales to $22.45bn, exceeding the FactSet consensus of $22.33bn.
Innovative medicine sales grew 5.5% to $14.49bn, while MedTech sales increased by 2.2% to $7.96bn, though the latter fell short of expectations.
Chief financial officer Joseph Wolk indicated that the 2024 outlook for MedTech sales growth had been adjusted to "closer to 6%", from the previously-anticipated range of 5% to 7%.
He noted strong momentum in key in-market products and significant progress in the drug pipeline within the innovative medicine segment.
Among the company's top-selling drugs, sales of Stelara, a psoriasis treatment, rose 3.1% to $2.89bn, and sales of the cancer treatment Darzalex increased 18.4% to $2.878bn.
However, sales of infectious disease drugs fell 13.9% to $965m, with Covid-19 vaccine sales plummeting 40% to $172m.
Looking ahead, Johnson & Johnson adjusted its earnings per share guidance to between $9.97 and $10.07, down from the previous range of $10.57 to $10.72.
The adjusted operating earnings per share guidance, excluding acquisitions, was raised slightly to $10.73, while the outlook including dilution from acquisitions was lowered to $10.00 to $10.10.
Despite those adjustments, the company raised its operational sales forecast to between $89.2bn and $89.6bn, from its previous range of $88.7bn to $89.1bn.
The guidance for estimated reported sales remained steady at $88bn to $88.4bn.
Additionally, Johnson & Johnson declared a regular third-quarter cash dividend of $1.24 per share, payable on 10 September to shareholders of record as of 27 August.
At 1146 EDT (11646 BST), shares in Johnson & Johnson were up 3.24% at $155.90.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.