Summary
Johnson & Johnson reported a total sales increase of 5.2% to $22.5 billion for the fiscal third quarter of 2024, with operational growth of 6.3%, partially offset by a negative currency impact. For the nine-month period, total sales grew by 4.0% to $66.3 billion, with operational growth of 5.6%. The company's Innovative Medicine segment showed resilient growth, with sales increasing by 4.9% in the third quarter and 3.9% for the nine-month period, driven by strong performance in Oncology and Pulmonary Hypertension, despite headwinds in Immunology and Infectious Diseases. The MedTech segment also demonstrated positive momentum, with sales up 5.8% for the quarter and 4.1% for the nine months, boosted by the acquisition of Shockwave Medical and strong performance in Electrophysiology and Cardiovascular areas. However, the company's earnings before provision for taxes saw a significant decrease in the third quarter to $3.3 billion from $5.2 billion in the prior year, primarily impacted by substantial charges related to talc matters ($2.0 billion in the quarter). The nine-month period showed an increase in earnings before taxes to $12.8 billion from $10.2 billion, driven by higher sales and a reduction in talc-related charges compared to the prior year's nine-month period. J&J continues to manage significant legal matters, particularly concerning talc and opioid litigation, which have led to substantial accruals and charges impacting profitability. The company's balance sheet remains robust, with cash and cash equivalents of $20.0 billion, and it continues to return capital to shareholders through dividends and share repurchases.
Financial Highlights
52 data points| Revenue | $22.47B |
| Cost of Revenue | $6.96B |
| Gross Profit | $15.51B |
| SG&A Expenses | $5.48B |
| Operating Income | $10.63B |
| Net Income | $2.69B |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.11 |
| Shares Outstanding (Basic) | 2.41B |
| Shares Outstanding (Diluted) | 2.43B |
Key Highlights
- 1Total sales increased by 5.2% to $22.5 billion in Q3 2024, driven by strong operational growth of 6.3%.
- 2Innovative Medicine segment sales grew 4.9% in Q3 2024, with Oncology and Pulmonary Hypertension showing significant operational growth.
- 3MedTech segment sales increased 5.8% in Q3 2024, bolstered by the Shockwave acquisition and double-digit growth in Electrophysiology and Cardiovascular.
- 4Earnings before taxes decreased significantly in Q3 2024 to $3.3 billion from $5.2 billion in the prior year, largely due to $2.0 billion in charges for talc matters.
- 5Research and Development expenses increased by 43.7% year-over-year for the quarter, primarily due to the $1.25 billion acquisition of Yellow Jersey Therapeutics.
- 6The company has accrued approximately $12.0 billion for talc matters, reflecting ongoing legal resolutions.
- 7J&J continues to return capital to shareholders, with dividends paid and shares repurchased during the quarter.