Johnson & Johnson (NYSE:JNJ) shares faced pressure on Wednesday as soft sales guidance for the coming year cast a shadow over expectation-beating fourth-quarter profit.
Adjusted net earnings of US$4.95 billion were down 11.1% year on year in the fourth quarter, J&J reported, but ahead of consensus expectations for US$4.88 billion.
A 5.3% increase in reported sales to US$22.52 billion in the meantime was in line with market forecasts.
Over the year, net earnings ticked up 5.6% to US$14.07 billion on a 4.3% increase in sales to US$88.82 billion, driven by 6.7% and 4.4% growth across J&J’s technology and pharmaceutical divisions respectively.
“2024 was a transformative year for Johnson & Johnson, marked by strong growth, an accelerating pipeline and industry-leading investments in innovation,” chief executive Joaquin Duato said.
“We are improving the standard of care in a broad range of diseases with high unmet need, including multiple myeloma, lung cancer, inflammatory bowel disease and heart failure.”
Mixed guidance clouded the update, however, with revenue in 2025 seen falling short of consensus but profit seen largely in line.
Revenue of between US$89.2 billion and US$90 billion was expected, against anticipations for US$91.18 billion, while guidance for adjusted per-share earnings of US$10.50 to US$10.70 compared to forecasts for US$10.54.
Shares fell 3.3% to US$143.29 on Wednesday.