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Johnson & Johnson’s (JNJ - Free Report) first-quarter 2024 earnings came in at $2.71 per share, which beat the Zacks Consensus Estimate of $2.64. Earnings rose 12.4% from the year-ago period.
Adjusted earnings exclude intangible amortization and some other special items. Including these items, J&J reported first-quarter earnings of $2.20 per share against a loss of 19 cents in the year-ago quarter.
Sales of this drug and medical devices giant came in at $21.38 billion, missing the Zacks Consensus Estimate of $21.40 billion by a slight margin. Sales rose 2.3% from the year-ago quarter, reflecting an operational increase of 3.9% and a negative currency impact of 1.6%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 4% on an operational basis. Excluding sales of COVID-19 vaccine, organic sales rose 7.7%.
Segment Details
Sales in J&J’s Innovative Medicines segment (previously the Pharmaceutical segment) rose 1.1% year over year to $13.56 billion, reflecting a 2.5% operational increase and a 1.4% negative currency impact. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 2.5%. Innovative Medicines sales beat the Zacks Consensus Estimate of $13.46 billion as well as our model estimate of $13.24 billion.
Higher sales of key products such as Darzalex, Stelara, Tremfya, Uptravi and Erleada drove the segment’s growth. New drugs like Carvykti, Tecvayli and Spravato also contributed to growth. The sales growth was partially dampened by lower sales of Imbruvica, COVID-19 vaccine and generic/biosimilar competition to drugs like Zytiga and Remicade.
Sales of blockbuster multiple myeloma medicine Darzalex rose 18.9% year over year to $2.69 billion in the quarter. Sales slightly beat the Zacks Consensus Estimate of $2.66 billion and our model estimate of $2.63 billion.Sales of the blockbuster psoriasis drug Stelara grew 0.3% to $2.45 billion in the quarter. Stelara sales missed the Zacks Consensus Estimate of $2.59 billion and our model estimate of $2.49 billion.
Imbruvica sales declined 5.2% to $784.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting sales of Imbruvica for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $712.0 million and our estimate of $699.8 million.
Erleada generated sales of $689 million in the quarter, up 27% year over year. Erleada sales beat the Zacks Consensus Estimate of $662 million as well as our model estimate of $661.5 million. Tremfya recorded sales of $808 million in the quarter, up 26.3% year over year. Tremfya sales beat the Zacks Consensus Estimate of $795.0 million as well as our model estimate of $761.6 million.
New drug Carvykti, a BCMA CAR-T therapy approved in 2022 for relapsed or refractory multiple myeloma (R/R MM), recorded sales of $157 million compared with $159 million in the previous quarter. Another new drug, Tecvayli, also approved in 2022 for R/R MM, recorded sales of $133 million in the quarter.
Spravato recorded sales of $225.0 million, up 72.2% year over year.
Pulmonary arterial hypertension drug Uptravi recorded sales of $468.0 million, rising 29.2% year over year. Xarelto sales declined 10.4% in the quarter to $518 million.
Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 1.2% to $1.06 billion in the quarter. Simponi/Simponi Aria sales rose 3% to $554.0 million, while Prezista sales declined 12.3% to $418.0 million.
Zytiga sales declined 25.9% to $181.0 million in the quarter due to generic competition. Sales of Remicade were down 10.9% in the quarter to $434 million.
MedTech segment sales came in at $7.82 billion, up 4.5% from the year-ago period, as an operational increase of 6.3% was offset by a negative currency movement of 1.8%. MedTech segment sales missed the Zacks Consensus Estimate as well as our model estimate of $7.93 billion.
Excluding the impact of all acquisitions and divestitures and currency, on an adjusted operational basis, worldwide sales rose 6.5%.
2024 Outlook
J&J tightened its total revenue expectations from a range of $87.8 billion-$88.6 billion to $88.0 billion-$88.4 billion. The new sales range indicates growth in the range of 4.7%-5.2% compared with 4.5% – 5.5% previously.
Operational sales growth is expected in the range of 5.5%-6%, compared with 5%-6% expected previously.
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is also expected to be in the range of 5.5%-6% compared with 5%-6% expected previously.
All revenue figures exclude any revenues from COVID-19 vaccine sales.
Adjusted earnings per share are expected in the range of $10.57-$10.72 compared with $10.55-$10.75 expected previously. The earnings range implies growth in the range of 6.6%-8.1% (6.4%-8.4% previously).
Our Take
J&J’s first-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Its Innovative Medicines unit outperformed expectations, with sales of several key drugs like Darzalex, Tremfya and Imbruvica beating estimates. However, sales of Stelara missed expectations. The MedTech unit sales also missed estimates. J&J tightened its previously issued sales and earnings growth expectations for 2024. J&J also announced a 4.2% increase in its quarterly dividend from $1.19 per share to $1.24 per share. This adds up to an annual dividend of $4.96 per share compared to the previous rate of $4.76 per share.
J&J’s shares were down around 1% in pre-market trading following the lukewarm results. In the past year, J&J’s shares have declined 10.9% against the industry’s 14.7% increase.
Image Source: Zacks Investment Research
J&J’s Innovative Medicines unit is performing at above-market levels. Growth is being driven by key products like Darzalex, Stelara, Tremfya, Erleada and Uptravi and also continued uptake from new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products.
Earlier this month, J&J announced that it has entered into a definitive agreement to acquire medical device company Shockwave Medical (SWAV - Free Report) for approximately $13.1 billion. The acquisition will strengthen JNJ’s MedTech cardiovascular portfolio by adding Shockwave’s leading intravascular lithotripsy (IVL) technology. ShockWave Medical’s IVL system is a catheter-based product, which works through local delivery of sonic pressure waves for the treatment of calcified plaque in arteries. These calcified plaques reduce blood flow and cause pain or heart attack.
Zacks Rank and Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold).
Johnson & Johnson Price, Consensus and EPS Surprise
In the past 60 days, 2024 estimates for ANI Pharmaceuticals have improved from $4.06 per share to $4.43 per share. For 2025, earnings estimates have improved from $4.80 per share to $5.04 per share in the past 60 days. In the past year, shares of ANIP have risen 71.3%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 109.06 %.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share have improved from 22 cents to 30 cents. Estimates for 2025 have increased from 32 cents to 50 cents. In the past year, shares of ADMA Biologics have risen 79.0%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same once. ADMA delivered a four-quarter average earnings surprise of 85.0%.
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J&J (JNJ) Q1 Earnings Beat Estimates, Sales Miss, MedTech Soft
Johnson & Johnson’s (JNJ - Free Report) first-quarter 2024 earnings came in at $2.71 per share, which beat the Zacks Consensus Estimate of $2.64. Earnings rose 12.4% from the year-ago period.
Adjusted earnings exclude intangible amortization and some other special items. Including these items, J&J reported first-quarter earnings of $2.20 per share against a loss of 19 cents in the year-ago quarter.
Sales of this drug and medical devices giant came in at $21.38 billion, missing the Zacks Consensus Estimate of $21.40 billion by a slight margin. Sales rose 2.3% from the year-ago quarter, reflecting an operational increase of 3.9% and a negative currency impact of 1.6%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 4% on an operational basis. Excluding sales of COVID-19 vaccine, organic sales rose 7.7%.
Segment Details
Sales in J&J’s Innovative Medicines segment (previously the Pharmaceutical segment) rose 1.1% year over year to $13.56 billion, reflecting a 2.5% operational increase and a 1.4% negative currency impact. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 2.5%. Innovative Medicines sales beat the Zacks Consensus Estimate of $13.46 billion as well as our model estimate of $13.24 billion.
Higher sales of key products such as Darzalex, Stelara, Tremfya, Uptravi and Erleada drove the segment’s growth. New drugs like Carvykti, Tecvayli and Spravato also contributed to growth. The sales growth was partially dampened by lower sales of Imbruvica, COVID-19 vaccine and generic/biosimilar competition to drugs like Zytiga and Remicade.
Sales of blockbuster multiple myeloma medicine Darzalex rose 18.9% year over year to $2.69 billion in the quarter. Sales slightly beat the Zacks Consensus Estimate of $2.66 billion and our model estimate of $2.63 billion.Sales of the blockbuster psoriasis drug Stelara grew 0.3% to $2.45 billion in the quarter. Stelara sales missed the Zacks Consensus Estimate of $2.59 billion and our model estimate of $2.49 billion.
Imbruvica sales declined 5.2% to $784.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting sales of Imbruvica for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $712.0 million and our estimate of $699.8 million.
Erleada generated sales of $689 million in the quarter, up 27% year over year. Erleada sales beat the Zacks Consensus Estimate of $662 million as well as our model estimate of $661.5 million. Tremfya recorded sales of $808 million in the quarter, up 26.3% year over year. Tremfya sales beat the Zacks Consensus Estimate of $795.0 million as well as our model estimate of $761.6 million.
New drug Carvykti, a BCMA CAR-T therapy approved in 2022 for relapsed or refractory multiple myeloma (R/R MM), recorded sales of $157 million compared with $159 million in the previous quarter. Another new drug, Tecvayli, also approved in 2022 for R/R MM, recorded sales of $133 million in the quarter.
Spravato recorded sales of $225.0 million, up 72.2% year over year.
Pulmonary arterial hypertension drug Uptravi recorded sales of $468.0 million, rising 29.2% year over year. Xarelto sales declined 10.4% in the quarter to $518 million.
Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 1.2% to $1.06 billion in the quarter. Simponi/Simponi Aria sales rose 3% to $554.0 million, while Prezista sales declined 12.3% to $418.0 million.
Zytiga sales declined 25.9% to $181.0 million in the quarter due to generic competition. Sales of Remicade were down 10.9% in the quarter to $434 million.
MedTech segment sales came in at $7.82 billion, up 4.5% from the year-ago period, as an operational increase of 6.3% was offset by a negative currency movement of 1.8%. MedTech segment sales missed the Zacks Consensus Estimate as well as our model estimate of $7.93 billion.
Excluding the impact of all acquisitions and divestitures and currency, on an adjusted operational basis, worldwide sales rose 6.5%.
2024 Outlook
J&J tightened its total revenue expectations from a range of $87.8 billion-$88.6 billion to $88.0 billion-$88.4 billion. The new sales range indicates growth in the range of 4.7%-5.2% compared with 4.5% – 5.5% previously.
Operational sales growth is expected in the range of 5.5%-6%, compared with 5%-6% expected previously.
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is also expected to be in the range of 5.5%-6% compared with 5%-6% expected previously.
All revenue figures exclude any revenues from COVID-19 vaccine sales.
Adjusted earnings per share are expected in the range of $10.57-$10.72 compared with $10.55-$10.75 expected previously. The earnings range implies growth in the range of 6.6%-8.1% (6.4%-8.4% previously).
Our Take
J&J’s first-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Its Innovative Medicines unit outperformed expectations, with sales of several key drugs like Darzalex, Tremfya and Imbruvica beating estimates. However, sales of Stelara missed expectations. The MedTech unit sales also missed estimates. J&J tightened its previously issued sales and earnings growth expectations for 2024. J&J also announced a 4.2% increase in its quarterly dividend from $1.19 per share to $1.24 per share. This adds up to an annual dividend of $4.96 per share compared to the previous rate of $4.76 per share.
J&J’s shares were down around 1% in pre-market trading following the lukewarm results. In the past year, J&J’s shares have declined 10.9% against the industry’s 14.7% increase.
Image Source: Zacks Investment Research
J&J’s Innovative Medicines unit is performing at above-market levels. Growth is being driven by key products like Darzalex, Stelara, Tremfya, Erleada and Uptravi and also continued uptake from new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products.
Earlier this month, J&J announced that it has entered into a definitive agreement to acquire medical device company Shockwave Medical (SWAV - Free Report) for approximately $13.1 billion. The acquisition will strengthen JNJ’s MedTech cardiovascular portfolio by adding Shockwave’s leading intravascular lithotripsy (IVL) technology. ShockWave Medical’s IVL system is a catheter-based product, which works through local delivery of sonic pressure waves for the treatment of calcified plaque in arteries. These calcified plaques reduce blood flow and cause pain or heart attack.
Zacks Rank and Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold).
Johnson & Johnson Price, Consensus and EPS Surprise
Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote
Some better-ranked stocks in the healthcare sector are ANI Pharmaceuticals (ANIP - Free Report) and ADMA Biologics (ADMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, 2024 estimates for ANI Pharmaceuticals have improved from $4.06 per share to $4.43 per share. For 2025, earnings estimates have improved from $4.80 per share to $5.04 per share in the past 60 days. In the past year, shares of ANIP have risen 71.3%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 109.06 %.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share have improved from 22 cents to 30 cents. Estimates for 2025 have increased from 32 cents to 50 cents. In the past year, shares of ADMA Biologics have risen 79.0%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same once. ADMA delivered a four-quarter average earnings surprise of 85.0%.