On July 17, 2024, Johnson & Johnson (JNJ, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Johnson & Johnson, the world's largest and most diverse healthcare firm, operates through its pharmaceutical and medical devices divisions, following the divestment of its consumer business, Kenvue, in 2023. The company focuses on therapeutic areas such as immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases, with over half of its revenue generated in the United States.
Performance Overview
Johnson & Johnson reported a 4.3% increase in second-quarter sales, reaching $22.4 billion, with operational growth of 6.6% and adjusted operational growth of 6.5%. Excluding the COVID-19 vaccine, adjusted operational growth was 7.1%. Despite a 5.9% decrease in earnings per share (EPS) to $1.93 due to one-time special charges, the adjusted EPS rose by 10.2% to $2.82.
Financial Achievements
Johnson & Johnson's financial achievements in Q2 2024 are noteworthy, particularly in the context of the drug manufacturing industry. The company's operational sales growth of 6.6% and adjusted operational sales growth of 6.5% underscore its robust performance. The adjusted net earnings increased by 1.6% to $6.84 billion, and the adjusted EPS of $2.82 represents a significant 10.2% increase from the previous year.
Income Statement Highlights
| ($ in Millions, except EPS) | 2024 | 2023 | % Change |
|---|---|---|---|
| Reported Sales | $22,447 | $21,519 | 4.3% |
| Net Earnings | $4,686 | $5,376 | (12.8)% |
| EPS (diluted) | $1.93 | $2.05 | (5.9)% |
Segment Performance
In the Innovative Medicine segment, worldwide operational sales excluding the COVID-19 vaccine grew by 8.8%, driven by strong performance in oncology and immunology products such as DARZALEX, ERLEADA, TREMFYA, and STELARA. The MedTech segment saw a 4.4% increase in worldwide operational sales, with growth primarily driven by electrophysiology products, Abiomed in Cardiovascular, and wound closure products in General Surgery.
Challenges and Future Outlook
Despite the positive performance, Johnson & Johnson faced challenges, including a 12.8% decline in net earnings and a 5.9% decrease in EPS due to one-time special charges. However, the company remains optimistic about its future, with significant progress in its product pipeline and upcoming regulatory milestones for key products like RYBREVANT and TREMFYA.
“Johnson & Johnson's second quarter performance reflects our relentless focus on advancing the next wave of medical innovation and resulted in strong sales and adjusted operational earnings per share growth,” said Joaquin Duato, Chairman and Chief Executive Officer.
Updated Guidance
Johnson & Johnson has updated its full-year 2024 guidance to reflect improved performance and the impact of recent strategic acquisitions, including Shockwave Medical. The company now expects adjusted operational EPS to be $10.05, considering the costs associated with these acquisitions.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Johnson & Johnson for further details.
