• Johnson & Johnson reported earnings per share (EPS) of $2.04, beating the estimated $1.99, and revenue of $22.52 billion, surpassing the $22.45 billion estimate.
• The FDA approval of Spravato (esketamine) for treating major depressive disorder marks a significant regulatory milestone for JNJ.
• Despite positive earnings and revenue growth, JNJ's stock experienced a decline, attributed to concerns over sales guidance for 2025 and the loss of the patent for Stelara.

Johnson & Johnson (NYSE:JNJ) is a global healthcare company known for its pharmaceuticals, medical devices, and consumer health products. The company competes with other major players like Pfizer and Merck. On January 22, 2025, JNJ reported earnings per share (EPS) of $2.04, surpassing the estimated $1.99. The company also reported revenue of $22.52 billion, exceeding the estimated $22.45 billion.

Despite these positive earnings, JNJ's stock experienced a decline. For the full year 2024, JNJ reported a 4.3% increase in sales and an EPS of $5.79. The company remains focused on its long-term growth strategy, targeting high-growth markets and developing promising pipeline products.

A significant development for JNJ is the FDA approval of its nasal spray, Spravato (esketamine), for treating major depressive disorder. This regulatory milestone is crucial for the company's growth. However, the stock decline post-earnings release suggests that investors may have concerns about other factors, such as the loss of the patent for Stelara.

JNJ's MedTech division performed strongly, with substantial investments in cardiovascular and surgical robotics expected to drive future growth. The company's sales for the quarter reached $22.52 billion, slightly exceeding the Zacks Consensus Estimate of $22.51 billion. This reflects a 5.3% increase from the same quarter last year, with an operational growth of 6.7% offset by a 1.4% negative currency impact.

In the domestic market, fourth-quarter sales increased by 10% to $13.2 billion. Despite these positive results, JNJ's stock experienced a decline due to its sales guidance for 2025, which fell short of market expectations. The company's financial metrics, such as a P/E ratio of 23.82 and a debt-to-equity ratio of 0.51, indicate a moderate level of debt and a reasonable valuation relative to its earnings.