Johnson & Johnson (NYSE:JNJ) has credited a positive start to its 2023 financial year to strong performances from its three business segments as it raised its full-year guidance.
However, the healthcare giant swung to a first-quarter loss after it accounted for a special one-time charge of $6.9 billion after subsidiary LTL Management re-filed for voluntary Chapter 11 bankruptcy protection and J&J agreed to contribute $8.9 billion, over 25 years, to settle thousands of lawsuits related to its baby powder and talc products, up from $2 billion previously.
Sales for the three months to March 31, 2022, increased by 5.6% to $24.7 billion, the company said in an earnings statement. It reported a net loss of $68 million, or $0.03 per share, from earnings of $5.25 billion, or $1.93 in 1Q 2022.
Excluding the one-time charge, adjusted net earnings were steady at $7.07 billion, while adjusted earnings per share rose a cent to $2.68, beating estimates of $2.50 per share.
Increased FY2023 guidance
J&J’s Consumer Health grew adjusted operational sales increased by 11.3% supported by sales of over-the-counter (OTC) products.
Pharmaceutical adjusted operations sales growth of 7.2% was driven by Darzalex, a biologic for the treatment of multiple myeloma, and Crohn’s disease treatment Stelera, as well as prostate cancer drug Erleada.
Adjusted operations sales at MedTech rose 6.4%.
“Our first quarter results demonstrate strong performance across all three segments of our business and reflect the dedication of Johnson & Johnson colleagues around the world,” chairman and CEO Joaquin Duato said. “With this momentum, I look forward to the remainder of the year, one filled with exciting catalysts that will create both near- and long-term value for patients and all of our stakeholders.”
The company has guided for a 4.5% to 5% increase in full-year 2023 adjusted operational sales, up from its previous guidance for a 3.5% to 4.5% increase. Adjusted EPS is expected to be 4.5% to 5.5% higher, against its previous forecast for a 3% to 5% rise.
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