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Johnson & Johnson Reports Better than Expected Q2 2023 Earnings, JNJ Shares Up Slightly
One of the oldest American pharmaceutical and consumer packaged goods companies, Johnson & Johnson (NYSE: JNJ) announced its second quarter (Q2) 2023 earnings on July 20, which ostensibly beat Wall Street expectations. According to the company’s announcement, the second quarter sales grew by about 6.3 percent and the operational growth excluding the COVID-19 vaccine jumped by 8.9 percent. Meanwhile, the company’s Joaquin Duato, Chairman of the Board and Chief Executive Officer highlighted that the future is bright for its vast products, especially as it moves ahead to split its shares.
“We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on Pharmaceutical and MedTech innovation,” Duato noted.
Johnson & Johnson Q2 2023 Financial Highlights
During the second quarter of 2023, the company announced adjusted earnings per share of $2.80 compared to $2.62 expected by analysts surveyed by Refinitiv. Additionally, Johnson & Johnson announced revenue of about $25.53 billion compared to the $24.62 billion expected by analysts surveyed by Refinitiv. Splitting the sales, the company announced that it collected about $13.44 billion from the United States market and the remaining $22 billion from the international market.
The pharmaceutical segment reported the highest sales with about $13.71 billion, followed by MedTech with a total sales of about $7.78 billion, and the remaining accrued from the consumer health segment. Although the company is facing several headwinds including some legal proceedings, it highlighted that the coming quarters could as well be profitable as the prior one.
As a result, the company announced that it will be increasing its 2023 full-year guidance midpoints for adjusted operational sales excluding the COVID-19 vaccine and the adjusted operating earnings per share. Notably, the company is forecasting its full-year sales to come in between $98.80 billion to $99.80 billion, which is about $1 billion higher than the guidance issued in April. Additionally, the company’s full-year earnings outlook is expected to come in between $10.70 to $10.80 per share, which is higher than the prior one issued in April between $10.60 to $10.70 per share.
Amid the legal litigations most centered on allegations that its pharmaceutical products are causing cancer to its users, the company has focused on splitting its pharma segment and MedTech segment for future growth prospects.
Market Outlook
The $413 billion valued company has been on the receiving end in the past two years. According to the latest stock market data, JNJ shares have dropped approximately 7.3 percent and 10 percent in the last year and YTD respectively. Nonetheless, 21 analysts are still optimistic about the company’s future performance having given the JNJ market an average rating of Over.
Johnson & Johnson Reports Better than Expected Q2 2023 Earnings, JNJ Shares Up Slightly
