FX.co ★ Johnson & Johnson Cuts FY24 Earnings View, Lifts Sales Forecast - Update

Johnson & Johnson, the pharmaceutical giant, announced a mixed financial performance for its third quarter, reporting weaker earnings but recording increased sales. Despite the downturn in its earnings, the company revised its fiscal 2024 earnings forecast downward yet still maintained projections above market expectations, largely due to its acquisition of V-Wave and its improved performance.

For the third quarter, Johnson & Johnson's profits declined compared to the previous year, though they surpassed Wall Street estimates. In pre-market trading on the NYSE, shares of J&J rose approximately 1.5 percent, reaching $164.

**Future Projections**

In terms of its fiscal 2024 outlook, Johnson & Johnson adjusted its anticipated earnings per share (EPS) to a range of $9.88 to $9.98, down from its previous forecast of $9.97 to $10.07. The revised operational EPS is now estimated to be between $9.86 and $9.96, compared to a prior estimate of $10.00 to $10.10. According to data from Thomson Reuters, analysts are, on average, forecasting an EPS of $9.84 for the year, excluding special items.

The company's sales for the year are now expected to be between $88.4 billion and $88.8 billion, a revision upward from the previous projection of $88.0 billion to $88.4 billion. Operational sales could reach $89.4 billion to $89.8 billion, up from a prior outlook of $89.2 billion to $89.6 billion. Market analysts anticipate annual sales figures around $88.51 billion.

The anticipated growth in adjusted operational sales has also been adjusted to a range of 5.7 percent to 6.2 percent, compared with the earlier expectation of 5.5 percent to 6.0 percent.

**Third Quarter Performance**

During the third quarter, Johnson & Johnson reported a net income of $2.694 billion, a significant drop of 37.5 percent from $4.309 billion reported in the same period last year. Correspondingly, earnings per share fell 34.3 percent to $1.11 from $1.69 previously, influenced by a one-time special charge and acquired in-process research and development (IPR&D).

After adjustments, earnings were $5.876 billion or $2.42 per share, in contrast to $6.78 billion or $2.66 per share a year ago. These figures exceeded analyst expectations, which averaged at $2.21 per share.

The company's quarterly sales increased by 5.2 percent, reaching $22.471 billion, up from $21.351 billion the prior year. Operational sales experienced a growth of 6.3 percent, while adjusted operational sales improved by 5.4 percent. Excluding the COVID-19 vaccine, adjusted operational sales rose by 5.6 percent.