Johnson & Johnson Backs FY25 Earnings View, Lifts Sales Forecast After Q3 Beats Market - Update

Johnson & Johnson

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(RTTNews) - Drug major Johnson & Johnson (JNJ) Tuesday reported significantly higher profit in its third quarter with growth in sales. Both adjusted earnings and top line beat market estimates. Further, the company maintained fiscal 2025 earnings outlook, but raised sales view.

In the pre-market activity, JNJ shares were gaining around 0.6 percent to trade at $192.07.

For fiscal 2025, the company reaffirmed adjusted earnings per share guidance of $10.85 at the midpoint, absorbing higher tax costs. The company still expects annual adjusted income per share of $10.80 to $10.90, reflecting a year-on-year growth of 8.2 percent to 9.2 percent.

For the full year, adjusted operational income per share is still projected to be $10.63 to $10.73, a growth of 6.5 percent to 7.5 percent from last year.

Analysts, on average, forecast the company to report income of $10.85 per share for the full year. Analysts' estimates typically exclude special items.

Further, the firm raised its sales guidance to $93.7 billion or 5.7 percent at the midpoint. Sales are now projected at $93.5 billion to $93.9 billion, compared to previous outlook of $93.2 billion to $93.6 billion. The revised guidance reflects a growth of 5.4 percent to 5.9 percent from last year, compared to previously expected growth of 5.1 percent to 5.6 percent.

Operational sales are now projected at $93.0 billion to $93.4 billion, compared to previous outlook of $92.7 billion to $93.1 billion. The revised guidance reflects a growth of 4.8 percent to 5.3 percent from last year.

Adjusted operational Sales are now expected to grow 3.5 percent to 4.0 percent from last year, compared to previous outlook of 3.2 percent to 3.7 percent.

Analysts forecast the company to report sales of $93.46 billion for the full year.

Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. "With a sharpened focus on the six priority areas of Oncology, Immunology, Neuroscience, Cardiovascular, Surgery and Vision, Johnson & Johnson is in a new era of accelerated growth and innovation, with pioneering treatments that will continue to transform lives."

In the third quarter, the company's net earnings totaled $5.152 billion or $2.12 per share, 91.2 percent higher than $2.694 billion or $1.11 per share last year.

Adjusted net earnings were $6.801 billion or $2.80 per share for the period, compared to $5.876 billion or $2.42 per share a year ago.

Analysts on average had expected the company to earn $2.76 per share.

The company's sales for the quarter rose 6.8 percent to $23.993 billion from $22.471 billion last year. The Street expected sales of $23.76 billion for the quarter.

Operational sales growth was 5.4 percent, and adjusted operational growth was 4.4 percent.

In the quarter, U.S. sales grew 6.2 percent from last year to $13.71 billion, and International sales improved 7.6 percent to $10.29 billion.

Segment-wise, Innovative Medicine sales increased 6.8 percent to $15.56 billion, and MedTech sales grew 6.8 percent from last year to $8.43 billion.

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