What's Going On Johnson & Johnson Stock Today?

Tuesday, Johnson & Johnson JNJ released better-than-expected earnings for its fourth quarter of 2023.

It reported quarterly adjusted earnings of $2.29 per share, up 11.7% year-over-year, beating the consensus of $2.28. Sales increased 7.3% Y/Y to $21.4 billion, beating the consensus of $20.99 billion.

On Tuesday, the stock closed 1.67% lower at $159.76, with a session volume of 9.147 million, compared to the average volume (100 day) of 6.798 million, according to data from Benzinga Pro.

In the initial year following its $16.6 billion acquisition of Abiomed, Johnson & Johnson MedTech has experienced significant returns. 

The company reported a notable 12.4% growth in worldwide operational sales within its medical device divisions for 2023, reaching a total revenue exceeding $30.4 billion. 

Abiomed played a key role in this success, contributing 4.7% to the overall revenue. Additionally, robust performances were observed in the sales of electrophysiology hardware, contact lenses, and surgical wound closure products.

Johnson & Johnson is experiencing a surge in demand for nonurgent surgeries among older adults, a rebound after many postponed these procedures during the Covid-19 pandemic. 

The company anticipates this elevated demand to persist into 2024, as stated by CFO Joseph Wolk on CNBC’s “Squawk Box.”

Tuesday, Johnson & Johnson also announced a tentative settlement to address investigations by 42 U.S. states and Washington, D.C., regarding alleged misleading information about the safety of its talc products linked to cancer cases. 

The pharmaceutical giant is set to pay approximately $700 million, marking a crucial step in resolving the contentious talc litigation.

One key Stelara patent expired in the U.S. last year, but Johnson & Johnson (negotiated agreements with competitors to postpone the release of their biosimilars until 2025. 

Amgen Inc AMGN is set to be the first to introduce its similar product, Wezlana, next year. Citing analysts, Reuters highlighted that this delay is expected to increase Stelara’s contribution to J&J’s sales in 2024 and 2025 more than initially expected.

Price Action: JNJ shares closed at $159.76 on Tuesday.

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