Johnson & Johnson (NYSE:JNJ) stock rose 0.76% (As on April 19, 11:10:42 AM UTC-4, Source: Google Finance) after the company reported adjusted earnings and revenue that topped Wall Street’s expectations, but lowered its sales guidance for its pharmaceutical business. The consumer staples giant reported a net loss of $68 million, related to its talc baby powder liabilities and costs tied to the upcoming spinoff of its consumer health business. That compares with a net income of $5.2 billion, or $1.93 per share, for the same period a year ago. J&J reported $13.4 billion in pharmaceutical sales, which grew more than 4% over the same quarter last year. The company said that increase was driven by sales of Darzalex, a biologic for the treatment of multiple myeloma, and the blockbuster drug Stelara, which is used to treat a number of immune-mediated inflammatory diseases. J&J’s consumer health business, which it is spinning off into a separate publicly traded company this year, reported about $3.8 billion in sales. That unit grew 7.4% over the same period last year, primarily driven by over-the-counter products such as Tylenol and skin health products under brands such as Neutrogena and Aveeno.
JNJ in the first quarter of FY 23 has reported the adjusted earnings per share of $2.68, beating the analysts’ estimates for the adjusted earnings per share of $2.50, based on a survey of analysts by Refinitiv. The company had reported the adjusted revenue growth of 5.6 percent to $24.75 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $23.67 billion.
Additionally, J&J also announced its board has approved a 5.3% quarterly dividend increase, to $1.19 per share, due to the company’s strong 2022 performance.
J&J slightly lowered its pharmaceutical sales target for 2025 to $57 million, down from the $60 million the company forecast two years ago. J&J cited currency dynamics, noting that foreign exchange headwinds had a negative impact of roughly $3 billion in the pharmaceutical business in 2022. J&J is now forecasting 2023 sales of $97.9 billion to $98.9 billion, about $1 billion higher than the guidance provided in January. The company raised its full-year adjusted earnings outlook to $10.60 to $10.70 per share, from a previous forecast of $10.45 to $10.65.
On the other hand, J&J has proposed to pay nearly $9 billion over the next 25 years to settle thousands of allegations that its baby powder and other talc products caused cancer. J&J’s subsidiary LTL Management also refiled for Chapter 11 bankruptcy protection earlier this month after its first attempt was thwarted.