Q124 JNJ earnings

earnings summary

Here is a summary and analysis of the Johnson & Johnson Q1 2024 earnings call:

Earnings Results:

• Worldwide Q1 sales of $21.4B increased 3.9% operationally. Excluding COVID-19 vaccine, operational sales growth was 7.6%.
• Adjusted net earnings were $6.6B and adjusted EPS was $2.71, up 3.8% and 12.4% respectively vs Q1 2023.
• Innovative Medicine worldwide sales of $13.6B increased 2.5% operationally (8.3% excluding COVID vaccine impact). MedTech worldwide sales of $7.8B increased 6.3% operationally.

2024 Guidance:

• Operational sales growth guidance increased to 5.5%-6.0% range (midpoint raised by $300M). Reported sales growth estimated at 4.7%-5.2%.
• Adjusted operational EPS guidance range tightened to $10.60-$10.75 (midpoint increased by $0.03 to $10.68). Reported adjusted EPS guidance remains $10.65.

Themes and Trends:

• Strong performance across strategic platforms and pipeline advancements provide confidence in long-term growth goals.
• Innovative Medicine driven by key brands (DARZALEX, TREMFYA, ERLEADA) and new launches. Significant pipeline progress in oncology, immunology, neuroscience.
• MedTech showing robust growth in Cardiovascular (electrophysiology, Abiomed) and recovery in Orthopedics procedures. Vision Care expected to normalize after Q1 stocking impacts.
• Continued investments in R&D, acquisitions (Shockwave, Ambrx), and 62nd annual dividend increase reflect healthy business and capital allocation priorities.

Market Conditions:

• Overall optimistic sentiment based on solid Q1 results, pipeline momentum and strategic moves. Raises confidence in achieving above-market growth in 2nd half of decade.
• Monitoring competitive landscape in key areas like multiple myeloma and impact of IRA drug pricing provisions, but well-positioned with growth drivers.
• Robust market conditions noted in MedTech areas like electrophysiology and orthopedic procedures.

In summary, the tone of the call was positive, highlighting a strong start to 2024 operationally and through key strategic actions. Management expressed confidence in the business trajectory and ability to achieve long-term growth goals through sustained innovation and targeted acquisitions. While acknowledging some competitive and policy factors to watch, overall market conditions appear favorable based on J&J’s diversified healthcare leadership.