HomeIndustriesJohnson & Johnson Beats Estimates, Cuts Full-Year Profit Forecast

Johnson & Johnson Beats Estimates, Cuts Full-Year Profit Forecast

Pharma giant Johnson & Johnson reported its second-quarter earnings, beating the analysts’ estimates on profit and revenue. Additionally, the company lowered its full-year profit forecast to account for the costs of mergers and acquisitions.

Johnson & Johnson had $2.82 in earnings per share in Q2 compared to $2.70 per share estimated by analysts. Its revenue came at $22.4 billion, narrowly beating expectations of $22.3 billion. The company benefited from strong sales of its drugs, marking a 3.1% increase compared to the same period in 2023, including Darzalex, medication for cancer treatment, and psoriasis drug Stelara.

The company previously forecasted $88.7 billion to $89.1 billion in revenue in sales for 2024 but now is predicting $89.2 billion to $89.6 billion. However, it expects $10 to $10.10 in earnings per share for the full year, down from the previous $10.60 to $10.75. The decrease is mainly due to costs of recent mergers and acquisitions, including the purchase of medical device firm Shockwave for $13 billion.

“Johnson & Johnson’s second quarter performance was marked by numerous clinical and regulatory milestones that address some of the most complex healthcare challenges facing patients worldwide,” Johnson & Johnson’s EVP and CFO Joe Wolk said in a statement. “Financial performance for the quarter was solid, demonstrating the breadth and diversification of our business and enabling us to meet and beat expectations on the top and bottom line.”

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