Johnson & Johnson is a renowned American multinational corporation founded in 1886, specializing in medical devices, pharmaceuticals, and consumer health products. Headquartered in New Brunswick, New Jersey, the company operates in over 60 countries, with its products reaching nearly every corner of the globe.
Johnson & Johnson is known for its commitment to improving health and well-being, offering a broad range of trusted products, from baby care items like Johnson’s Baby, to life-saving medications and advanced medical technologies. With a strong focus on innovation, research, and development, the company continues to lead in various healthcare sectors, enhancing the quality of life for millions of people worldwide.
Johnson & Johnson Fiscal Q4 2024
Johnson & Johnson (JNJ) reported a 5.3% increase in fourth-quarter sales, reaching $22.5 billion. Operational growth was 6.7%, while adjusted operational growth stood at 5.7%.
Also, earnings per share (EPS) for the fourth quarter were $1.41, with adjusted EPS at $2.04.
Full-Year Performance:
For the full year 2024, Johnson & Johnson saw a 4.3% increase in sales, totaling $88.8 billion. Operational growth was 5.9%, with adjusted operational growth at 5.4%. Excluding the COVID-19 vaccine, operational growth was 7%. The company reported full-year EPS of $5.79 and adjusted EPS of $9.98.
Significant Achievements:
Pipeline Progress: Notable advancements include the overall survival data for RYBREVANT + LAZCLUZE.
Also, the initiation of the TAR-200 submission, and the approval of the investigational device exemption for the OTTAVA general surgery robotic system.
Guidance
Johnson & Johnson has issued guidance for 2025, expecting operational sales growth of 2.5% to 3.5%. Meanwhile, expect EPS of $10.75 to $10.95, reflecting an 8.7% growth at the mid-point.
Board Statements
Joaquin Duato, Chairman and CEO of Johnson & Johnson called 2024 a transformative year. It was marked by strong growth, an accelerating pipeline, and significant investments in innovation. He emphasized the company’s commitment to improving care for diseases with high unmet needs. These include multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure.
Duato also highlighted Johnson & Johnson’s strong financial foundation. He pointed to the differentiated portfolio and robust pipeline as key factors. These elements position the company for sustained growth and innovation.
Impact on the Market
The drop in Johnson & Johnson’s stock price after their report can be explained by several issues that worried investors. First, there are ongoing talc-related lawsuits, with a major case in Texas coming up, which adds financial risk.
Additionally, the company’s earnings have been hurt by foreign exchange rate changes. There’s also a slowdown in sales of medical devices, particularly in China, affecting revenue expectations.
More competition from generic drugs for their best-seller Stelara, and pricing pressure from Medicare negotiations, has also been a challenge.
Finally, their forecast for 2025 wasn’t as strong as investors had hoped, with expected sales growth of just 0.5% to 1.5%. This cautious outlook raised concerns about future growth, leading to a decrease in investor confidence and a fall in the stock price.
