JNJ Q1 Beats Market; Backs FY25 Adj. EPS View, Cuts Adj. Operational Earnings Outlook - Update

Johnson & Johnson

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(RTTNews) - Drug major Johnson & Johnson (JNJ), while reporting significantly higher first-quarter earnings with increased sales, on Tuesday maintained its outlook for fiscal 2025 adjusted earnings, but trimmed adjusted operational earnings view.

Further, the company raised sales outlook on a reported and operational basis, but maintained adjusted operational sales growth view.

Separately, Johnson & Johnson announced that its Board of Directors has declared a 4.8 percent increase in the quarterly dividend to $1.30 per share from $1.24 per share last year.

In pre-market activity on the NYSE, JNJ shares were gaining around 1.3 percent to trade at $156.30.

At the new rate, the indicated dividend on an annual basis is $5.20 per share compared to the previous rate of $4.96 per share. The next quarterly dividend is payable on June 10 to shareholders of record at the close of business on May 27.

For fiscal 2026, the company continues to expect adjusted reported earnings per share growth of 6.2 percent at the mid-point, reaching $10.60 percent. Adjusted earnings are still expected in a range of $10.50 to $10.70, which represents a growth of 5.2 percent to 7.2 percent.

Meanwhile, the company trimmed its forecast for adjusted operational earnings per share, and now expects a mid point of $10.60 per share with a growth of 6.2 percent. The new outlook range is $10.50 to $10.70, a growth of 5.2 percent to 7.2 percent.

The company previously estimated adjusted operational earnings per share at mid point of $10.85 with a growth of 8.7 percent. The previous outlook range was $10.75 - $10.95, representing a growth of 7.7 percent to 9.7 percent.

The Wall Street analysts on average expect the company to report profit per share of $10.50. Analysts' estimates typically exclude special items.

For fiscal 2025, JNJ now expects reported sales in a range of $91 billion to $91.8 billion, or 2.6 percent to 3.6 percent higher than last year. The mid point is $91.4 billion, representing a growth of 3.1 percent from last year.

Previously, the company projected reported sales in a range of $89.2 billion - $90.0 billion, at mid point of $89.6 billion. The expected growth was 1 percent at mid point, in a range of 0.5 percent to 1.5 percent.

Further, operational sales are now estimated in a range of $91.6 billion to $92.4 billion, at mid point of $92 billion. The expected growth is 3.8 percent at mid point, in a range of 3.3 percent to 4.3 percent.

Previously, the company projected operational sales in a range of $90.9 billion to $91.7 billion, at mid point of $91.3 billion. The expected growth was 3 percent at mid point, in a range of 2.5 percent to 3.5 percent.

Adjusted operational sales are still projected to rise 2.5 percent at mid-point of guidance range of 2 percent to 3 percent.

The increase in operational sales guidance reflects the addition of CAPLYTA following the completion of the Intra-Cellular Therapies acquisition.

The Street is looking for sales of $90.29 billion for the year.

In its first quarter, Johnson & Johnson's profit increased from the same period last year and beat the Street estimates.

The company's bottom line came in at $11 billion or $4.54 per share, 238 percent higher than $3.26 billion or $1.34 per share last year.

Adjusted earnings were $6.71 billion or $2.77 per share for the period, compared to prior year's $6.58 billion or $2.71 per share.

Analysts had expected the company to earn $2.58 per share.

The company's revenue for the period rose 2.4 percent to $21.89 billion from $21.38 billion last year. Anslysts projected sales of $21.57 billion for the quarter.

Operational sales growth was 4.2 percent and adjusted operational growth was 3.3 percent.

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