Johnson & Johnson (NYSE:JNJ) reported a robust second quarter, with both earnings and revenue surpassing Wall Street estimates.
The healthcare giant posted adjusted earnings per share (EPS) of $2.82, exceeding analysts' predictions by $0.10, and a revenue of $22.45 billion, also topping the consensus estimate of $22.34 billion.
This performance represents a 4.3% increase in reported sales growth, with an operational growth of 6.6%.
The company's stock responded positively to the news, with shares rising 2.1% as investors reacted favorably to the earnings and revenue beat. The driver behind the upward movement in the stock price was the company's ability to outperform on both earnings and revenue fronts.
Johnson & Johnson's financial results showed a 10.2% increase in adjusted EPS despite a 5.9% decrease in reported EPS due to one-time special charges.
The company's operational sales, excluding the impact of translational currency and the COVID-19 Vaccine, grew by 7.1%. Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson, attributed the successful quarter to the company's focus on innovation and the advancement of its product pipeline, including significant developments with TREMFYA, RYBREVANT, and the VARIPULSE platform.
In the Innovative Medicine segment, the company saw worldwide operational sales growth of 8.8%, excluding the COVID-19 Vaccine, driven by strong performance in Oncology and Immunology. The MedTech segment also exhibited growth, with worldwide operational sales up by 4.4%, primarily due to gains in electrophysiology products and wound closure products.
Looking ahead, Johnson & Johnson has raised its full-year 2024 operational sales guidance, reflecting the acquisition of Shockwave Medical and updates to its adjusted operational EPS guidance to account for improved performance and recent strategic acquisitions.
The company now anticipates a full-year EPS of $10.05, narrowly surpassing analysts' consensus of $10.01.
Duato expressed confidence in the company's trajectory, stating, "With a robust pipeline, upcoming regulatory milestones, the integration of Shockwave, and continued expansion of newly launched products, we have a strong foundation for near and long-term growth."
Johnson & Johnson's second-quarter performance and optimistic guidance underscore its commitment to innovation and strategic growth, positioning the company favorably in the eyes of investors and the broader healthcare market.