In this photo illustration the stock trading graph of Johnson and Johnson is seen on a smartphone screen.
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Johnson & Johnson on Thursday reported second-quarter revenue and adjusted earnings that topped Wall Street’s expectations, and lifted its full-year guidance as sales from the company’s medtech business jumped.
J&J is benefitting from a rebound in demand for non-urgent surgeries among older adults, who deferred those procedures during the pandemic. That increased demand has been observed by health insurers like UnitedHealth Group and Elevance Health.
Here’s how J&J results compared with Wall Street expectations, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.80 adjusted, vs. $2.62 expected
- Revenue: $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 during the quarter grew 6.3% over the same period last year.
The pharmaceutical giant reported a net income of $5.14 billion, or $1.96 per share. That compares with a net income of $4.8 billion, or $1.80 per share, for the same period a year ago.
Excluding certain items, adjusted earnings per share were $2.80 for the period.
Shares of J&J have dropped more than 10% for the year, putting the company’s market value at roughly $412 billion.
J&J is now forecasting full-year sales of $98.8 billion to $99.8 billion, about $1 billion higher than the guidance 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 come amid investor anxiety over the thousands of lawsuits claiming that the company’s talc-based products were contaminated with the carcinogen asbestos, which caused ovarian cancer and several deaths.
Those products, such as J&J’s namesake baby powder, now fall under Kenvue. But J&J will assume all talc-related liabilities that arise in the U.S. and Canada.
In April, J&J’s subsidiary LTL Management filed for bankruptcy in New Jersey, proposing to pay nearly $9 billion to settle more than 38,000 lawsuits and prevent new cases from coming forward. It’s the company’s second attempt to resolve talc claims in bankruptcy court after a federal appeals court rejected an earlier bid.
Most litigation has been halted during the bankruptcy proceedings.
J&J continues to deny the allegations and contend that its talc-based products don’t cause cancer.