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JOHNSON & JOHNSON 8-K Report, Financial Results (Apr 16, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed April 16, 2024
Period End
April 16, 2024
Security
JNJ
In the record · 2016–202610-K1110-Q338-K134

JNJ filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 134 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Apr ’18Apr ’18
  2. Leadership change8-K · Dec ’20Dec ’20
  3. Deal closed8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed April 16, 2024. Cited figures are marked; the original filing is the authoritative source.

Johnson & Johnson reported first-quarter 2024 results on April 16, 2024, with reported sales up 2.3% to $21.4 billiona.

Operational growth was 3.9% and adjusted operational growth was 4.0%; excluding the COVID-19 vaccine, adjusted operational growth was a stronger 7.7%, showing the core business accelerating as the vaccine tail rolled off. GAAP diluted EPS was $2.20b, though this is not comparable to the prior-year period, which was depressed by a $6.9 billion litigation charge. Adjusted EPS rose 12.4% to $2.71.

Growth was led by Innovative Medicine excluding the vaccine (up 8.3%c operationally), with oncology drugs such as DARZALEX, CARVYKTI, and ERLEADA, plus pulmonary hypertension and TREMFYA contributing. MedTech grew 6.3% operationally, driven by electrophysiology and Abiomed. Management raised the midpoint of full-year 2024 guidance.

Adjusted operational sales growth is now expected at 5.5%–6.0% (midpoint 5.8%, up from 5.5%), and adjusted operational EPS is guided to $10.60d–$10.75 (midpoint $10.68, up from $10.65). Reported sales guidance midpoint rose to $88.2 billion, and adjusted EPS guidance midpoint is $10.65, unchanged. The company also announced a 4.2% quarterly dividend increase to $1.24 per share, its 62nd consecutive annual increase, which brings the annualized payout to $4.96.

The quarter also included regulatory and pipeline milestones, including FDA approval of OPSYNVI and biweekly TECVAYLI dosing, and the pending acquisition of Shockwave Medical. Investors should weigh the strong underlying growth and guidance raise against ongoing dependence on oncology and the continued impact of currency and the COVID-19 vaccine wind-down.

02—Key points

Key Highlights

  1. Q1 2024 reported sales rose 2.3% to $21.4B; operational growth was 3.9% and adjusted operational growth was 4.0%, or 7.7% excluding the COVID-19 vaccine.
  2. GAAP EPS of $2.20 and adjusted EPS of $2.71 (up 12.4% year over year); the prior-year GAAP loss reflected a $6.9B litigation charge.
  3. Innovative Medicine ex-vaccine grew 8.3% operationally, led by oncology (DARZALEX, CARVYKTI, ERLEADA, TECVAYLI) and pulmonary hypertension (UPTRAVI, OPSUMIT).
  4. MedTech operational sales grew 6.3%, driven by electrophysiology (up 25.9% operationally) and Abiomed.
  5. Full-year 2024 guidance midpoints were raised: adjusted operational sales growth to 5.8% (from 5.5%) and adjusted operational EPS to $10.68 (from $10.65).
  6. Quarterly dividend increased 4.2% to $1.24 per share (annualized $4.96), the 62nd consecutive annual increase; ex-dividend date is May 20, 2024.
  7. Pending acquisition of Shockwave Medical and completed acquisition of Ambrx were announced or closed in the period, signaling continued portfolio expansion.

03—Questions

Frequently Asked Questions

  1. Why did reported sales growth (2.3%) lag operational growth (3.9%)?

    Currency translation was a 1.6-point headwind, as a stronger U.S. dollar reduced the reported value of international sales. International sales declined 3.4% reported, though they grew 4.0% excluding the COVID-19 vaccine on an operational basis.

  2. How much did the COVID-19 vaccine affect growth?

    The vaccine was a significant drag. Q1 2024 vaccine sales were only $25 million, down 96.6% from $747 million a year earlier. Excluding the vaccine, worldwide sales grew 6.0% reported and 7.6% operationally, and adjusted operational growth ex-vaccine was 7.7%.

  3. Why is GAAP EPS of $2.20 not comparable to the prior year?

    The Q1 2023 GAAP loss of $(0.19) per share included a $6.9 billion litigation-related charge. Q1 2024 GAAP results benefited from no comparable litigation charge and from $(322) million in other income, net. Adjusted EPS, which excludes items such as intangible amortization, restructuring, and acquisition costs, is the more useful basis for year-over-year comparison ($2.71 vs. $2.41).

  4. What does the guidance raise imply for the rest of 2024?

    The company raised the midpoint of adjusted operational sales growth to 5.8% (from 5.5%) and adjusted operational EPS to $10.68 (from $10.65). Reported sales midpoint rose to $88.2 billion, and adjusted EPS midpoint held at $10.65 because of currency assumptions, with the euro assumed at $1.08 versus $1.09 in January.

04—Continue

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