Johnson & Johnson Reports Mixed First-Quarter Earnings, Increases Dividend
Johnson & Johnson (JNJ) recently released its first-quarter earnings report, which showed a mix of results. While the company’s sales figures fell slightly below estimates, its income exceeded expectations. Additionally, Johnson & Johnson announced an increase in its dividend, marking the 62nd consecutive year of doing so. The company also narrowed its full-year guidance for 2024, projecting sales and adjusted earnings per share (EPS) to increase by approximately 5% and 7%, respectively.
Sales Figures and Income
In the first quarter, Johnson & Johnson reported total sales of $21.38 billion, slightly missing analysts’ expectations of $21.44 billion. Despite this, the company’s adjusted net income came in at $6.58 billion, or $2.71 per share, surpassing estimates of $6.39 billion and $2.62 per share, respectively. Compared to the previous year, revenue increased by 2.3%, with adjusted income and EPS rising by 3.8% and 12.4%, respectively.
Dividend Increase
One of the highlights of Johnson & Johnson’s earnings report was the announcement of a dividend increase for the 62nd consecutive year. The company raised its dividend by 4.2% to $1.24 per share from $1.19 per share, resulting in a yearly payout of $4.96. Shareholders of record on May 21 will receive the next quarterly dividend on June 4.
Full-Year Guidance
Johnson & Johnson adjusted its full-year sales guidance to a range of $88 billion to $88.4 billion, narrowing it from the previous range of $87.8 billion to $88.6 billion. Similarly, the company slightly narrowed its adjusted EPS guidance to a range of $10.57 to $10.72 from $10.55 to $10.75.
Post-Split Performance
This earnings report marks Johnson & Johnson’s first full fiscal year following its split last year, which separated its consumer brands into a new entity called Kenvue (KVUE). The company retained the Johnson & Johnson name for its medical technology and pharmaceutical divisions. Sales in the U.S. increased by 7.8% compared to the previous year’s first quarter, while international sales saw a decline of about 3.4%.
Strategic Acquisitions
Johnson & Johnson has been actively pursuing acquisitions in 2024 to bolster its offerings in key sectors. Recent acquisitions include Ambrx Biopharma and Shockwave Medical, aimed at expanding the company’s presence in the cancer drug and cardiovascular markets, respectively.
Stock Performance
Following the earnings report, Johnson & Johnson’s stock experienced a slight decline of about 2%, trading at $144.60 as of 10:08 a.m. ET. Year-to-date, the stock is down nearly 10%, reflecting broader market trends and investor sentiment.
Conclusion
Despite mixed results in the first quarter, Johnson & Johnson remains a stalwart in the healthcare technology and pharmaceutical industry. With a history of consistent dividend increases and a strategic focus on acquisitions and growth opportunities, the company is poised to navigate challenges and capitalize on opportunities in the evolving healthcare landscape.
For more information on Johnson & Johnson’s first-quarter earnings report, please visit Investopedia.
