Johnson & Johnson Reports Q1 Revenue of $24.7 Billion, Beats Estimates and Raises Full-Year Guidance

Intelligent Finance APP learned that before the U.S. stock market on Tuesday, Johnson & Johnson (JNJ.US) announced its financial results for the first quarter of 2023. The earnings report showed that Johnson & Johnson's Q1 revenue increased by 5.6% year-over-year to $24.7 billion, surpassing the market expectation of $23.666 billion. However, due to a special one-time expense, the company incurred a net loss of $68 million, compared to a net profit of $5.149 billion in the same period last year; the diluted loss per share was $0.03, compared to earnings per share of $1.93 in the same period last year, and the market expectation was earnings per share of $2.10.

Adjusted net profit was US$7.068 billion, a year-on-year decrease of 0.9%; adjusted diluted earnings per share were US$2.68, compared to US$2.67 in the same period last year.

By region, sales in the United States were $12.517 billion, an increase of 9.7% year-over-year; international sales were $12.229 billion, an increase of 1.8% year-over-year.

By business segment, sales of the Consumer Health business reached $3.852 billion, representing a year-over-year increase of 7.4%; sales of the Pharmaceutical business amounted to $13.413 billion, marking a year-over-year growth of 4.2%; and sales of the Medical Technology business totaled $7.481 billion, reflecting a year-over-year rise of 7.3%.

Q1 COVID-19 vaccine revenue was $747 million, market expected $204.8 million.

Johnson & Johnson CFO Joseph Wolk said that the company has raised its performance expectations due to strong growth in its three major business sectors: consumer health, pharmaceuticals, and medical technology. Johnson & Johnson expects full-year 2023 sales to reach $97.9 billion to $98.9 billion, compared to market expectations of $97.73 billion and previous guidance of $96.9 billion to $97.9 billion. Adjusted earnings per share are projected at $10.60 to $10.70, up from the prior forecast of $10.45 to $10.65.

Wolk said: "The growth of all three business units in the first quarter was much stronger than in the fourth quarter of last year. At this point, our position has shifted to a more responsibly optimistic stance. We feel good about 2023."

After the earnings report was released, as of press time, the stock was up 1.45% in pre-market trading. As of Monday's close, the stock had fallen more than 6% this year, with a market value of approximately $430 billion.

However, Johnson & Johnson is still facing long-term legal disputes regarding its talcum powder baby powder products. Earlier this month, the company proposed to pay nearly $9 billion over the next 25 years to settle thousands of claims that its baby powder and other talc products cause cancer.