New Jersey-based pharmaceutical giant Johnson & Johnson (NYSE:JNJ) hit top-line expectations in today’s annual earnings call, but slightly undershot with its adjusted earnings results.
The company reported a reported 6.5% year-on-year growth in sales of $85.2 billion but the full-year earnings per share (EPS) depicted a different trend, decreasing by 15.3% to $5.20 a share.
This decline was primarily due to a special one-time charge incurred in the first quarter. On an adjusted basis, EPS increased by 11.1% to $9.92, slightly below the forecast between $10.02 and $10.08 given in the third quarter.
Adjusted operational sales growth of 5.9% also undershot internal guidance of 7.5% given in the third quarter.
Johnson’s medical technology (medtech) segment proved to be a top performer, with worldwide operational sales growing 12.4%, with the acquisition of Abiomed contributing 4.7%.
Medtech worldwide adjusted operational sales grew 7.8%, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, wound closure products in General Surgery, and biosurgery in Advanced Surgery.
Following today’s results, Johnson & Johnson (NYSE:JNJ) has reaffirmed its financial guidance for the upcoming year.
The company projects an operational sales growth between 5% and 6% and an adjusted operational EPS between $10.55 to $10.75, implying earnings growth of 7.4% at the midpoint.
Joaquin Duato, chairman and chief executive officer of Johnson & Johnson, stated: “Johnson & Johnson’s full year 2023 results reflect the breadth and competitiveness of our business and our relentless focus on delivering for patients.
“We have entered 2024 from a position of strength and I am confident in our ability to lead the next wave of health innovation."
Shares are expected to open 0.23% lower when markets open on Tuesday.