Johnson & Johnson Q1 Profit Tops Estimates; Raises 2023 Guidance Midpoints

(RTTNews) - Johnson & Johnson (JNJ) reported an increase of 0.4% in first-quarter adjusted profit per share, that also topped Wall Street estimates. Operational growth in sales was 9.0% and adjusted operational growth was 7.6%, for the quarter. Consumer Health worldwide adjusted operational sales increased 11.3% largely driven by over-the-counter products. Pharmaceutical worldwide adjusted operational sales grew 7.2%, for the quarter.

Looking forward, the company increased 2023 full-year guidance midpoints for adjusted operational sales and adjusted operational EPS. Adjusted operational sales are now projected to increase 4.5% - 5.5% from prior year, revised from previous guidance of 3.5% - 4.5%. Adjusted operational EPS growth is now expected in a range of 3.5% - 4.5%, revised from prior guidance of 2.5% - 4.5%.

First-quarter net loss was $68 million, a decline in earnings of 101.3% from prior year. Loss per share was $0.03 compared to profit of $1.93. The company noted that the decrease of 101.6% was due to a special one-time charge.

Adjusted net profit was $7.07 billion, down 0.9% from a year ago. Adjusted earnings per share was $2.68 compared to $2.67. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $2.51, for the quarter. Analysts' estimates typically exclude special items.

First quarter reported sales were $24.75 billion, up 5.6% from last year. Analysts on average had estimated $23.67 billion in revenue.

MedTech worldwide adjusted operational sales grew 6.4%. MedTech worldwide operational sales grew 11.0%, with the acquisition of Abiomed contributing 4.6%.

For fiscal 2023, the company expects adjusted EPS in a range of $10.60 - $10.70, revised from previous guidance of $10.45 - $10.65. The company now expects operational sales in a range of $97.9 - $98.9 billion, revised from prior guidance range of $96.9 - $97.9 billion.

Johnson & Johnson also announced that its Board has declared a 5.3% increase in the quarterly dividend, to $1.19 per share from $1.13 per share. At the new rate, the indicated dividend on an annual basis is $4.76 per share compared to the previous rate of $4.52 per share. The quarterly dividend is payable on June 6, 2023 to shareholders of record as of the close of business on May 23, 2023. The ex-dividend date is May 22, 2023.

Shares of Johnson & Johnson are up 1% in pre-market trade on Tuesday.

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