Johnson & Johnson (JNJ) has reported better-than-expected fourth-quarter earnings due largely to strong sales in its medical device business unit.
The New Jersey-based company has announced earnings per share (EPS) of $2.29 U.S. versus $2.28 U.S. that had been forecast on Wall Street.
Revenue in the quarter totaled $21.40 billion U.S. versus $21.01 billion U.S. that had been expected among analysts. Sales in the final months of 2023 rose 7.3% from a year earlier.
Johnson & Johnson said the strong results were due largely to a 13.3% year-over-year increase in sales of the company’s medical devices, which generated revenue of $7.67 billion U.S. in Q4.
The company’s acquisition of Abiomed, a cardiovascular medical technology company, in December of last year was also accretive to the Q4 results.
In terms of guidance, Johnson & Johnson said that it expects sales of $87.8 billion U.S. to $88.6 billion U.S. and earnings of $10.55 U.S. to $10.75 U.S. per share for all of 2024.
The Q4 earnings come six months after Johnson & Johnson completed the spinoff of its consumer health unit into a new company called “Kenvue,” the biggest shake-up in its history.
The Kenvue spinoff was executed as Johnson & Johnson faces thousands of lawsuits claiming that its talc-based baby powder caused ovarian cancer and several deaths in women.
The consumer products, including baby powder, now fall under Kenvue while Johnson & Johnson focuses on its pharmaceutical and medical device businesses.
In the past 12 months, Johnson & Johnson’s stock has declined 4% to trade at $162.47 U.S. per share.
