Johnson & Johnson's Q3 Earnings: Revenue And EPS Beat On Strong Cancer Drug Sales, Revises Annual Outlook To Reflect V-Wave Acquisition

On Tuesday, Johnson & Johnson JNJ reported a third-quarter adjusted EPS of $2.42, down 9.0% year-over-year, beating the consensus of $2.21. The pharmaceutical giant reported sales of $22.47 billion, up 5.2% year over year and beating the consensus of $22.16 billion.

Operational growth was 6.3%, and adjusted operational growth was 5.4%.

Innovative Medicine sales increased to $14.58 billion, up 4.9% (+6.3% adjusted operational). Growth was driven by Darzalex (daratumumab), Erleada (apalutamide), Carvykti (ciltacabtagene autoleucel), Tremfya (guselkumab), Spravato (esketamine), and Opsumit (macitentan).

Stelara (ustekinumab) and Simponi/Simponi ARIA (golimumab)partially offset growth.

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Stelara sales fell 5.7% to $2.68 billion. Darzalex sales rose 22.9% to $3.02 billion. The company’s cancer cell therapy, Carvykti, generated sales of $286 million, up around 87.6% year over year.

MedTech worldwide operational sales grew 6.4%, with net acquisitions and divestitures positively impacting growth by 2.7%, driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, contact lenses in Vision and wound closure products in General Surgery.

Growth was partially offset by endocutter products in Advanced Surgery.

Guidance: Johnson & Johnson updated full-Year 2024 adjusted operational EPS guidance to reflect improved performance and the acquisition of V-Wave; costs associated with the acquisition of V-Wave more than offset the improvement.

Johnson & Johnson expects fiscal year 2024 operational sales guidance of $89.4 billion—$89.8 billion versus prior guidance of $89.2 billion—$89.6 billion.

The Medtech giant expects 2024 reported sales guidance of $88.4 billion—$88.8 billion, versus prior guidance of $88 billion—$88.4 billion and consensus of $88.51 billion.

The company expects fiscal year 2024 adjusted EPS guidance of $9.88–$9.98, down from prior guidance of $9.97–$10.07 versus the consensus of $9.84, with adjusted operational EPS of $9.86–$9.96 compared to prior guidance of $10.00–$10.10.

Recently, Johnson & Johnson, as a part of its strategic reprioritization of its Communicable Diseases R&D portfolio, discontinued the Phase 2 field study evaluating the efficacy of investigational antiviral candidate mosnodenvir to prevent dengue virus in adults aged 18-65.

Price Action: At the last check on Tuesday, JNJ stock was down 1.29% at $159.52 during the premarket session.

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