NEW BRUNSWICK (dpa-AFX) - Drug major Johnson & Johnson (JNJ), while reporting weak earnings but higher sales in its third quarter, on Tuesday trimmed its fiscal 2024 earnings view, but is still above market. Further, the company lifted sales forecast. The company said the outlook revision reflects improved performance and the acquisition of V-Wave.
In its third quarter, Johnson & Johnson's profit decreased from the same period last year but beat the Street estimates.
In pre-market activity on the NYSE, JNJ shares were gaining around 1.5 percent to trade at $164.
Outlook
For fiscal 2024, Johnson & Johnson now expects adjusted earnings per share of $9.88 to $9.98, lower than previously expected $9.97 to $10.07.
Adjusted operational earnings per share is now expected to be $9.86 to $9.96, lower than previous estimate of $10.00 to $10.10.
Analysts on average expect the company to earn $9.84 per share for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
For the year, reported sales are now projected to be between $88.4 billion and $88.8 billion, higher than previous view of $88.0 billion to $88.4 billion.
Operational sales would be $89.4 billion to $89.8 billion, while the company previously expected sales of $89.2 billion to $89.6 billion.
The Street is looking for sales of $88.51 billion for the year.
Adjusted operational sales are now expected to increase in the 5.7 percent to 6.2 percent range, higher than the 5.5 percent to 6.0 percent growth it expected earlier.
Q3 Results
In its third quarter, Johnson & Johnson's earnings totaled $2.694 billion, down 37.5 percent from last year's $4.309 billion. Earnings per share declined 34.3 percent to $1.11 from $1.69 last year.
The results reflected a one-time special charge and acquired IPR&D.
Adjusted earnings were $5.876 billion or $2.42 per share for the period, compared to $6.78 billion or $2.66 per share a year ago. Analysts had expected the company to earn $2.21 per share.
The company's sales for the quarter rose 5.2 percent to $22.471 billion from $21.351 billion last year.
Operational sales grew 6.3 percent and adjusted operational sales improved 5.4 percent. Adjusted operational sales excluding COVID-19 Vaccine increased 5.6 percent.
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