Johnson & Johnson (JNJ.US) reported fourth-quarter results that surpassed analyst expectations. The company posted sales of $21.40 billion and net income of $4.13 billion for the fourth quarter of 2023. On a per-share basis, net earnings were $1.70 compared to $1.22 in the same quarter a year ago when net income was $3.23 billion. Excluding one-time items, the company’s adjusted earnings per share amounted to $2.29 for the most recent quarter. 

Following the spinoff of its former consumer products division, Kenvue, Johnson & Johnson now operates through two business segments: Innovative Medicine, comprised of its pharmaceuticals division, and MedTech, representing its medical devices. Innovative Medicine revenue grew 4.2% to $13.7 billion during the quarter, while MedTech sales surged 13.3% to $7.7 billion. 

J&J progressed in obtaining approvals for several new treatments, including its Balversa drug for bladder cancer. However, the company’s lucrative Stelara medication faces mounting competition in Europe as early as mid-2024. During an investor call, CEO Joaquin Duato stated that J&J is pursuing acquisitions and is open to considering “many types of deals.” 

Johnson & Johnson’s full-year 2024 guidance is unchanged from its December forecasts. The company projects operational sales growth of 5-6%, amounting to $88.2-$89 billion. For earnings, J&J forecasts adjusted EPS of $10.55-$10.75, reflecting a 6.4-8.4% increase over last year. This EPS guidance aligns with the Wall Street consensus of $10.68. 

(Johnson & Johnson Stock Performance Monthly Chart) 

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