Explore the stellar performance of US stocks in 2023 with a deep dive into Johnson & Johnson’s (JNJ) recent financial report for the fourth quarter and the entire year of 2023. As the world’s largest medical company specializing in pharmaceuticals, medical equipment, diagnostics, and consumer health, JNJ reported substantial quarterly and annual sales growth, accompanied by a noticeable increase in adjusted earnings per share.
Q4 Highlights: Notable Growth Across the Board
The results for the fourth quarter revealed a reported sales growth of 7.3%, reaching $21.4 billion, with operational growth nearly unchanged at 7.2%. Adjusted operational growth stood at 5.7%, excluding the COVID-19 vaccine, which contributed to a 10.9% operational growth. Annual figures were equally positive, reporting a 6.5% increase in sales to $85.2 billion and a 7.4% operational growth. Adjusted annual operational growth reached 5.9%, excluding COVID-19 vaccine sales, leading to a 9.0% increase in operational activities.
Earnings Per Share (EPS) Surge: A Snapshot of Financial Strength
Earnings per share (EPS) for the fourth quarter saw an impressive 39.3% increase to $1.70, while adjusted EPS grew by 11.7% to $2.29. Despite a 15.3% decrease in annual EPS to $5.20, attributed to one-time expenses in the first quarter, adjusted annual EPS increased by 11.1% to $9.92. JNJ’s confirmation of its 2024 forecasts, with a projected operational sales growth of 5.0-6.0% and adjusted EPS in the range of $10.55-$10.75, reflects a steady 7.4% average growth.
Global Impact: Innovative Medicines and Medical Technologies
In the innovative medicines segment, excluding COVID-19 vaccine sales, worldwide operational sales grew by 7.2%, driven by strong performances in oncology, immunology, and neurology. Key contributors included DARZALEX, ERLEADA, TECVAYLI, CARVYKTI, STELARA, TREMFYA, and SPRAVATO. The medical technology segment also reported a significant 12.4% increase in worldwide operational sales, with adjusted operational sales growing by 7.8%, fueled by products in interventional solutions, vision, general surgery, and advanced surgery.
Regulatory Milestones and Innovation: Paving the Way Forward
Throughout the year, JNJ achieved notable regulatory milestones, including full approval for the bladder cancer treatment BALVERSA and regulatory approval for the VARIPULSE pulse field ablation platform in Japan. The company continued to innovate, introducing new products such as the hemostatic sealing patch ETHIZIA and making strategic acquisitions like Ambrx to advance next-generation antibody-drug conjugates for cancer treatment.
Future Focus: Positioning for Success in 2023 and Beyond
As JNJ prepares to sell its consumer group under the new name Kenvue in 2023, the company’s focus on innovative medicine and medtech is expected to contribute to further growth, solidifying its position as a leader in healthcare innovations.
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