Johnson & Johnson Reveals Updated 2023 Projections After Finalizing Biggest Shake Up In 135 Years

Johnson & Johnson JNJ has unveiled 2023 projections, predicting double-digit profit growth after its recent spinoff of consumer health company Kenvue Inc KVUE. 

The company's outlook provides an early glimpse into the performance of its standalone drugs and medical device businesses.

Last week, Johnson & Johnson accepted around 190.9 million JNJ stock in exchange for around 1.5 billion Kenvue common stock.

Following the completion of the exchange offer, Johnson & Johnson retains an approximately 9.5% stake in Kenvue.

For FY2023, Johnson & Johnson anticipates adjusted reported EPS of $10 to $10.10, a 12.5% increase at the midpoint compared to 2022 and the prior guidance of $10.70–$10.80 and the consensus of $10.75.

As part of the spinoff, Johnson & Johnson intends to classify its consumer health business as discontinued operations. This move will also lead to a gain of $20 billion in Q3, further underlining the strategic and financial implications of the spinoff.

Johnson & Johnson expects FY23 reported sales growth of 7%-8% compared to previous guidance of 6.5%–7.5%.

It sees operational sales growth of 7.5%-8.5% (vs. 7%–8%) and adjusted operational sales growth of 6.2%-7.2% (compared to 6%–7%).

Price Action: JNJ shares are down 1.75% at $163.10 on the last check Wednesday.

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