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Johnson & Johnson (NYSE: JNJ) has reported its second-quarter 2024 financial results, showcasing a robust performance that underscores the company’s continued focus on innovation and growth.

The pharmaceutical giant reported sales of $22.4 billion, marking a 4.3% increase from the same period last year. Operational growth stood at 6.6%, with adjusted operational growth at 6.5%. Excluding the COVID-19 vaccine, adjusted operational growth was slightly higher at 7.1%.

Despite these positive sales figures, net earnings decreased by 12.8% to $4.686 billion, and earnings per share (EPS) dropped by 5.9% to $1.93. However, the adjusted EPS saw a significant increase of 10.2%, reaching $2.82.

The company’s performance was buoyed by its Innovative Medicine and MedTech segments. Innovative Medicine saw a 5.5% increase in reported sales, driven by strong performances from products like DARZALEX, ERLEADA, and TREMFYA. MedTech also contributed positively, with a 2.2% increase in reported sales, primarily due to growth in electrophysiology products and Abiomed in Cardiovascular. 

The U.S. market performed particularly well, with sales growing by 7.8%, while international sales remained relatively flat with a 0.2% increase.
 

JNJ Beats EPS and Revenue Expectations in Q2

When comparing the current performance against expectations, Johnson & Johnson exceeded analysts’ forecasts. The company reported an adjusted EPS of $2.82, surpassing the expected $2.72.

Similarly, the reported revenue of $22.4 billion slightly edged out the anticipated $22.34 billion. This outperformance was primarily driven by the strong sales in the U.S. and the robust performance of key products in the Innovative Medicine segment. Despite the positive revenue and adjusted EPS figures, the decline in net earnings and EPS due to one-time special charges was a point of concern.

The company’s operational sales growth of 6.6% and adjusted operational growth of 6.5% were in line with the market’s expectations, reflecting a stable and consistent growth trajectory. The exclusion of COVID-19 vaccine sales from the adjusted figures provided a clearer picture of the company’s core performance, which showed an even stronger growth rate of 7.1%. This indicates that Johnson & Johnson’s core business segments are performing well, despite the challenges posed by the pandemic and other external factors.
 

Jonhson & Johnson Updates Full Year 2024 Guidance to Reflect Better Performance

Johnson & Johnson has updated its full-year 2024 guidance to reflect improved performance and the impact of recent strategic acquisitions, including Shockwave Medical.

The company has revised its adjusted operational EPS guidance to $10.05, down from the previous $10.68, mainly due to costs associated with these acquisitions. The operational sales guidance has been updated to a range of $89.2 billion to $89.6 billion, reflecting a growth rate of 6.1% to 6.6%.

This is an improvement from the earlier guidance of $88.7 billion to $89.1 billion, with a growth rate of 5.5% to 6.0%.

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