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HomeHealth USJohnson & Johnson (JNJ) Q2 Earnings Report 2023

Johnson & Johnson (JNJ) Q2 Earnings Report 2023

This illustration shows a Johnson & Johnson stock trading graph displayed on a smartphone screen.

Rafael Henrique SOPA Images | Light Rocket | Getty Images

Johnson & Johnson On Thursday, it reported second-quarter revenue and adjusted earnings that topped Wall Street expectations, and lifted its full-year guidance as sales from the company’s medtech business rose.

J&J is capitalizing on growing demand for non-urgent surgeries among older adults, who have postponed these procedures during the pandemic. This growing demand has been noticed by health insurers. United Health Group and Alliance Health.

Here are J&J’s results compared to Wall Street expectations, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.80 adjusted, vs. $2.62 expected
  • Income: $25.53 billion, vs. $24.62 billion expected

J&J, whose financial results are considered a bellwether for the broader health sector, said its sales rose 6.3 percent during the quarter compared with the same period last year.

The pharmaceutical company reported net income of $5.14 billion, or $1.96 per share. That compares with net income of $4.8 billion, or $1.80 per share. Same period one year ago.

Excluding certain items, adjusted earnings per share for the period were $2.80.

Shares of J&J have fallen more than 10% for the year, giving the company a market value of about $412 billion.

J&J is now forecasting full-year sales of $98.8 billion to $99.8 billion, up nearly $1 billion from the guidance it provided in April.

The company raised its 2023 adjusted earnings outlook to $10.70 to $10.80 per share, from a previous forecast of $10.60 to $10.70 per share.

J&J’s quarterly results came amid investor anxiety over thousands of lawsuits claiming the company’s talc-based products were contaminated with the carcinogen asbestos, which caused ovarian cancer and several deaths.

Those products, like J&J’s baby powder, are now under Kenvue. But J&J will assume all talc-related responsibilities originating in the US and Canada.

In April, J&J subsidiary LTL Management filed for bankruptcy in New Jersey, proposing to pay about $9 billion to settle more than 38,000 lawsuits and prevent new ones from coming forward. This is the company’s second attempt to resolve the talc claims in bankruptcy court after a federal appeals court rejected an earlier bid.

Most litigation is stayed during bankruptcy proceedings.

J&J continues to deny these allegations and claims that its talc-based products do not cause cancer.


Source by [CNBC News]



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