FX.co ★ Johnson & Johnson Q2 Adj. EPS Beats View, Cuts FY24 Earnings Forecast

**Johnson & Johnson Reports Mixed Second Quarter Results, Updates Fiscal 2024 Outlook**

Johnson & Johnson announced on Wednesday a decline in second-quarter profits due to certain charges, although adjusted earnings surpassed market expectations, driven by sales growth. The pharmaceutical giant has revised its fiscal 2024 adjusted earnings outlook downwards but increased its operational sales forecast, primarily reflecting its acquisition of Shockwave Medical.

As of pre-market activity on the New York Stock Exchange (NYSE), Johnson & Johnson shares were down approximately 0.5%, trading at $150.27.

Joaquin Duato, Chairman and CEO, commented, "With a robust pipeline and upcoming regulatory milestones for RYBREVANT and TREMFYA, combined with the integration of Shockwave and the continued expansion of newly launched products such as ACUVUE OASYS MAX 1-Day contact lenses and our VARIPULSE platform, we are well-positioned for both near and long-term growth."

For fiscal 2024, Johnson & Johnson now forecasts adjusted earnings per share (EPS) between $9.97 to $10.07, with a midpoint of $10.02, marking a growth of 0.5% to 1.5% year-over-year.

Previously, the company expected adjusted EPS between $10.57 to $10.72, with a midpoint of $10.65, representing a year-over-year growth of 6.6% to 8.1%.

Adjusted operational EPS is now projected to range from $10.00 to $10.10, with a midpoint of $10.05, indicating a growth rate of 0.8% to 1.8%. The earlier estimate had forecast operational EPS between $10.60 to $10.75, with a midpoint of $10.68 and a year-over-year growth of 6.9% to 8.4%.

On average, analysts anticipate the company will earn $10.01 per share, based on data from Thomson Reuters. Analysts' estimates typically exclude special items.

Annual sales projections remain unchanged at $88 billion to $88.4 billion, with a midpoint of $88.2 billion, representing a growth of 4.7% to 5.2%. However, operational sales are now expected to range from $89.2 billion to $89.6 billion, with a midpoint of $89.4 billion, compared to the previously anticipated range of $88.7 billion to $89.1 billion, with a midpoint of $88.9 billion.

The revised operational sales forecast signifies a growth of 6.1% to 6.6%, up from the previously projected 5.5% to 6%. Adjusted operational sales growth expectations remain between 5.5% and 6.0%, with midpoint growth at 5.8%.

Analysts expect annual sales to reach $88.74 billion.

In fiscal 2023, Johnson & Johnson's adjusted income per share stood at $9.92, with total sales amounting to $85.159 billion.

For the second quarter, the company's net income fell to $4.69 billion, down 12.8% from $5.38 billion the previous year, due to one-time special charges. Earnings per share declined by 6% to $1.93 from $2.05 a year ago.

Adjusted earnings for the quarter increased to $6.84 billion or $2.82 per share, compared to $6.73 billion or $2.56 per share last year. Analysts had predicted adjusted earnings of $2.70 per share.

Quarterly sales rose by 4.3% to $22.45 billion, up from $21.52 billion the previous year. Analysts had expected quarterly sales to be $22.31 billion.

In the quarter, operational sales increased by 6.6%, while adjusted operational sales grew by 6.5%. Excluding contributions from the COVID-19 vaccine, adjusted operational growth was 7.1%.

U.S. sales saw a 7.8% increase from the previous year, reaching $12.57 billion, while international sales saw a marginal increase of 0.2% to $9.88 billion. Operational sales in international regions were up by 5.1%.

Innovative Medicine worldwide sales totaled $14.49 billion, marking a 5.5% increase on a reported basis, with operational sales growth at 7.8%. Excluding the COVID-19 vaccine, Innovative Medicine worldwide operational sales grew by 8.8%.

MedTech worldwide sales reached $7.96 billion, reflecting a 2.2% increase on a reported basis and a 4.4% increase on an operational basis.