Johnson & Johnson Surges on Strong Q3 Revenue and Adjusted Earnings Beat
Johnson & Johnson's stock climbed after surpassing revenue and adjusted profit expectations in Q3, with an updated full-year sales forecast despite lowered profit estimates following a key acquisition.
Highlights
- Johnson & Johnson's shares rose following better-than-anticipated third-quarter revenue and adjusted earnings results.
- Net income declined significantly due to substantial one-time charges including legal expenses.
- The company raised its full-year sales guidance but trimmed profit forecasts to reflect the impact of a recent acquisition.
Johnson & Johnson (JNJ) experienced a share price increase after reporting third-quarter revenue of $22.47 billion, marking a 5% year-over-year growth and exceeding analyst expectations based on Visible Alpha data. However, net income dropped 38% to $2.69 billion, impacted by billions in one-time costs such as legal settlements and acquisition expenses.
Adjusted Earnings Surpass Projections
Excluding over $3 billion in one-off expenses like legal fees, intangible asset amortization, and acquisition-related costs, Johnson & Johnson's adjusted profit reached $5.88 billion, beating estimates by more than $500 million.
The company updated its full-year sales outlook, increasing the range to $88.4 billion–$88.8 billion from the previous $88 billion–$88.4 billion. Conversely, adjusted earnings per share guidance was revised downward to $9.88–$9.98 from $9.97–$10.07, accounting for the recent acquisition of V-Wave, a firm specializing in heart failure therapies.
CEO Joaquin Duato expressed optimism, citing recent drug approvals and progress in pipeline projects as factors bolstering confidence in both short- and long-term growth plans.
While Johnson & Johnson shares initially dipped in premarket trading, they rebounded to gain 2% by late morning and are approximately 5% higher year-to-date.
Note: This article has been updated with the latest stock price information.
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