Johnson & Johnson (NYSE:JNJ) stock fell 0.49% (As on April 17, 11:26:02 AM UTC-4, Source: Google Finance) after the company reported first-quarter adjusted earnings that topped Wall Street’s expectations as sales in its medical devices business surged. The pharmaceutical giant booked net income of $5.35 billion, or $2.20 per share during the quarter. That compares with a net loss of $491 million, or 19 cents per share, for the year-earlier period. At the time, J&J recorded costs tied to its talc baby powder liabilities and the spinoff of its consumer health unit Kenvue.

Meanwhile, the results come weeks after J&J’s whopping $13.1 billion acquisition of heart device firm Shockwave Medical,  part of its push into the cardiovascular space. Both companies have said the deal will make J&J a leader in four quickly growing cardiovascular technology categories. J&J expects the transaction to close in the middle of the year, which will impact the company’s full-year guidance. J&J has scooped up two other heart device companies over the last two years, spending $16.6 billion to buy Abiomed and $400 million to acquire private company Laminar. Those deals also aim to strengthen J&J’s medical devices business after the company’s separation from its consumer health unit Kenvue last year.

JNJ in the first quarter of FY 24 has reported the adjusted earnings per share of $2.71, beating the analysts’ estimates for the adjusted earnings per share of $2.64, based on a survey of analysts by LSEG. The company had reported the adjusted revenue growth of 2 percent to $21.38 billion in the first quarter of FY 24, largely inline with  the analysts’ estimates for revenue of $21.4 billion. J&J’s medical devices business generated sales of $7.82 billion during the first quarter, up more than 4% year over year. Wall Street was expecting revenue of $7.87 billion, according to estimates compiled by StreetAccount. The sales of the unit’s vision products, including contact lenses, fell 3.3% to $1.26 billion in the quarter. Wall Street was expecting vision sales of $1.33 billion. J&J reported $13.56 billion in pharmaceutical sales, marking around 1% year-over-year growth. It was the fourth quarter without any U.S. sales from J&J’s Covid vaccine, which brought in $25 million in international revenue. Analysts were expecting sales of $13.5 billion for the business segment, according to StreetAccount.

J&J expects adjusted earnings of $10.57 to $10.72 per share. That compares to a previous guidance of $10.55 to $10.75 per share.

Separately, J&J said it will increase its quarterly dividend to $1.24 per share, up 4.2% from $1.19 per share.