Johnson & Johnson (JNJ) reported better-than-expected results in the fourth quarter. The biotechnology company’s adjusted earnings declined by 10.9% to $2.04 per share, slightly ahead of consensus estimates of $2.00 per share.
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JNJ’s Cancer Drugs Drive its Revenues in Q4
Furthermore, the company’s revenues increased by 5.3% year-over-year to $22.5 billion in the fourth quarter, in line with consensus estimates. The growth in JNJ’s revenues was driven by a 19% rise in the sales of its cancer drug. This rise was led by Darzalex, its multiple myeloma treatment, which generated over $3 billion in sales, marking an increase of 20.9% year-over-year.
In addition, the company’s innovative medicine unit delivered fourth-quarter sales of $14.33 billion, up 4.4% from the prior year, while the medtech unit achieved $8.19 billion in revenue, a growth of 6.7% year-over-year. These results reflect robust demand across key product lines.
Notably, JNJ’s innovative medicine business comprised more than 60% of its total sales in Q4.
JNJ Issues FY25 Guidance
Looking ahead, the company expects adjusted earnings in the range of $10.5 to $10.70 per share in FY25 while revenues are likely to be between $89.2 and $90 billion. For reference, analysts were expecting the company to report earnings of $10.56 per share on revenues of $90.9 billion.
Is JNJ Stock a Buy or Sell?
Analysts remain cautiously optimistic about JNJ stock, with a Moderate Buy consensus rating based on four Buys and seven Holds. Over the past year, JNJ has declined by more than 5%, and the average JNJ price target of $169 implies an upside potential of 14.1% from current levels. These analyst ratings are likely to change following JNJ’s results today.
