In this photo illustration, Johnson & Johnson’s stock trading graph is displayed on a smartphone screen.
Rafael Enrique | SOPA Images | Light Rocket | Getty Images
Johnson & Johnson announced Thursday second-quarter sales and adjusted earnings beat Wall Street expectations, and raised its full-year outlook after sales surged at the company’s medical technology business.
J&J is benefiting from a rebound in demand for non-urgent surgeries among seniors who postponed surgeries during the pandemic. This increase in demand has been observed by medical insurers such as: united health group and Elevance Health.
Here’s how J&J’s performance compares to Wall Street expectations, based on analyst research by Refinitiv.
- Earnings per share: $2.80 adjusted, $2.62 expected
- Earnings: $25.53 billion, versus a forecast of $24.62 billion
J&J’s results are considered a forerunner in the broader medical sector, and said it posted a 6.3% year-on-year increase in sales in the quarter.
The pharmaceutical giant reported net income of $5.14 billion, or $1.96 per share. By comparison, net income is $4.8 billion, or $1.80 per share. the same period one year ago.
Excluding certain items, adjusted earnings per share for the quarter were $2.80.
Shares of J&J have fallen more than 10% over the year, giving the company a market value of about $412 billion.
J&J now expects full-year sales of $98.8 billion to $99.8 billion, about $1 billion higher than its April guidance.
The company has raised its 2023 adjusted earnings guidance to $10.70 to $10.80 per share from a previous forecast of $10.60 to $10.70.
J&J’s quarterly results come amid investor fears over thousands of lawsuits alleging that the company’s talc-based products are contaminated with asbestos, a carcinogen that has caused ovarian cancer and several deaths.
These products, including J&J’s eponymous baby powder, are now owned by Kenvue. However, J&J will assume all talc-related liabilities incurred in the United States and Canada.
In April, J&J subsidiary LTL Management filed for bankruptcy in New Jersey, settling more than 38,000 lawsuits and offered to pay nearly $9 billion to prevent new lawsuits from being filed. It will be the company’s second attempt to resolve the talc claim in bankruptcy court after a federal appeals court rejected an earlier bid.
Most of the cases were dismissed during bankruptcy proceedings.
J&J continues to deny the allegations, claiming its talc-based products are not carcinogenic.