Johnson & Johnson Reports Third-Quarter 2024 Financial Results
Johnson & Johnson (NYSE: JNJ) has reported its financial performance for the third quarter of 2024, showcasing notable growth and continued strategic advancements within its operations.
Key Financial Metrics
| Metric | Q3 2024 | YoY Change | Consensus Estimates |
|---|---|---|---|
| Revenue | $22.5 billion | +5.2% | $22.16 billion |
| EPS | $1.11 | -34.3% | N/A |
| Adjusted EPS | $2.42 | -9.0% | $2.21 |
Johnson & Johnson reported a revenue increase of 5.2% year-over-year to $22.5 billion, exceeding consensus estimates of $22.16 billion. Earnings per share (EPS) decreased by 34.3% to $1.11, primarily impacted by a one-time special charge and acquired IPR&D. Adjusted EPS, however, was reported at $2.42, down 9% from the previous year yet surpassing expectations of $2.21. The results reflect robust sales growth balanced by strategic investments impacting earnings.
Revenue by Segment
| Segment | Segment Growth | Notable Products |
|---|---|---|
| Innovative Medicine | +6.3% | DARZALEX, ERLEADA, TREMFYA, OPSUMIT |
| MedTech | +6.4% | Electrophysiology products, Abiomed, contact lenses |
In the Innovative Medicine segment, Johnson & Johnson saw a 6.3% operational sales growth, driven by products like DARZALEX and TREMFYA. The MedTech segment achieved a similar 6.4% operational sales growth, with contributions from its cardiovascular and vision divisions. These performances underscore the successful diversification across key healthcare markets.
Key Developments and Operational Highlights
- Regulatory approval for TREMFYA in ulcerative colitis and RYBREVANT + LAZCLUZE for non-small cell lung cancer.
- Submission of an Investigational Device Exemption (IDE) for OTTAVA, a new general surgery robotic system.
- Launch of VELYS Spine and Shockwave E8 IVL Catheter.
These developments highlight Johnson & Johnson's efforts to expand its product offerings and enhance its market presence in innovative sectors.
Comments from Company Officers
Joaquin Duato, Chairman and CEO, expressed confidence in the company’s near and long-term growth prospects, attributing success to the breadth of the business and recent advancements. The pipeline expansion through recent approvals and product launches is expected to bolster Johnson & Johnson’s competitive edge.
Forward Guidance
Johnson & Johnson has updated its full-year 2024 guidance, reflecting improved performance and integrating costs associated with the acquisition of V-Wave. Specific operational EPS guidance remains undisclosed, adhering to non-GAAP financial disclosure practices.
Stock Price Movement
Following the earnings release, Johnson & Johnson's stock saw a 1.5% increase, which suggests positive investor sentiment regarding the results and the company's strategic positioning.
Overall, Johnson & Johnson’s third-quarter results reflect a balance of robust revenue growth and strategic investments, positioning the company for continued success in its key segments.
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