Johnson & Johnson Beats Q2 Earnings and Revenue Estimates, Raises Full-Year Guidance

Johnson & Johnson (NYSE:JNJ) shares rose more than 3% on Wednesday after the company reported impressive second-quarter results, surpassing Wall Street expectations for both earnings and revenue.

The healthcare giant delivered an EPS of $2.82, beating analyst forecasts by $0.10, and generated revenue of $22.45 billion, exceeding the consensus estimate of $22.34 billion. This performance marks a 4.3% increase in reported sales growth and a 6.6% rise in operational growth.

Despite a 5.9% decline in reported EPS due to one-time special charges, Johnson & Johnson's adjusted EPS rose by 10.2%. The company also reported a 7.1% increase in operational sales, excluding the impact of currency translation and the COVID-19 vaccine.

Chairman and CEO Joaquin Duato credited the strong quarter to the company's emphasis on innovation and advancing its product pipeline, highlighting key developments with TREMFYA, RYBREVANT, and the VARIPULSE platform.

The Innovative Medicine segment saw an 8.8% growth in worldwide operational sales, excluding the COVID-19 vaccine, driven by robust performance in Oncology and Immunology. The MedTech segment also demonstrated strength, with a 4.4% increase in worldwide operational sales, mainly due to gains in electrophysiology and wound closure products.

Looking ahead, Johnson & Johnson revised its full-year 2024 operational sales guidance upward, reflecting the acquisition of Shockwave Medical and adjustments to its adjusted operational EPS guidance based on improved performance and recent strategic acquisitions. The company now forecasts a full-year EPS of $10.05, slightly above the Street estimate of $10.01.