Johnson & Johnson Posts Mixed Earnings, Shifts Full-Year Guidance

Johnson & Johnson (JNJ) reported mixed second-quarter results Wednesday, as one-time costs caused the company to miss profit estimates despite better-than-expected sales.

Sales of the company’s pharmaceuticals and medical devices rose just over 4% from the same time last year to $22.45 billion, better than the $22.38 billion analysts had expected, according to consensus estimates compiled by Visible Alpha. However, profits fell short of estimates due to various one-time costs like legal fees and asset amortization costs.

Johnson & Johnson reported $4.69 billion in net income, short of the $5.66 billion analysts had expected. After accounting for the one-time expenses, however, the company posted $6.84 billion in adjusted net income, or $2.82 per share, better than the $6.59 billion and $2.71 per share analysts had anticipated.

JNJ Lifts Full-Year Sales Guidance But Lowers Profit Projections

The company also shifted its full-year guidance from the last time it updated the projections to account for the financial impact of recent acquisitions, raising its expectations for sales while also projecting lower profits than it had previously.

For the full fiscal year, Johnson & Johnson projects operational sales from $89.2 billion to $89.6 billion, above the previous range of $88.7 billion to $89.1 billion guided in April. However, the company also lowered projections for adjusted earnings per share (EPS) to a range of $9.97 to $10.07 from $10.57 to $10.72.

Analysts currently project sales of $88.58 billion and adjusted EPS of $10.42 for the full year, according to estimates compiled by Visible Alpha.

Shares rose 2% as markets opened Wednesday to $154.24 but are slightly negative for 2024.