Group 1: U.S. Credit Ratings - In 2011, S&P Global Ratings downgraded the U.S. long-term credit outlook from AAA to AA+ due to budgetary issues, with Fitch downgrading U.S. credit again in 2023 and Moody's considering a similar move [1] - The 2024 fiscal deficit has ballooned to over $1.8 trillion, exacerbating debt and fiscal issues [1] Group 2: Microsoft - Microsoft holds AAA and Aaa ratings from S&P and Moody's, respectively, and has seen its stock fall about 12% this year, outperforming peers in the "Magnificent Seven" [4][6] - The company has a diverse business model across various tech sectors, including cloud, video games, and AI, and was an early investor in OpenAI [4] - Microsoft has a strong balance sheet with over $71.5 billion in cash and equivalents, approximately $40 billion in long-term debt, and equity exceeding $302 billion, resulting in a low debt-to-equity ratio [6] Group 3: Johnson & Johnson - Johnson & Johnson is the only other U.S. company with top credit ratings and recently announced an acquisition of Intra-Cellular Therapies for $14.6 billion, which may impact its credit rating due to increased debt [7] - The stock has performed well, up nearly 9% this year, and the company raised its full-year revenue outlook to $91.4 billion from $89.4 billion [8] - Johnson & Johnson's CFO indicated that the guidance includes a $400 million impact from tariffs, which could affect stock performance if trade tensions with China persist [9] - At the end of 2024, Johnson & Johnson had over $24 billion in cash, about $30.6 billion in long-term debt, and over $71 billion in total equity, maintaining a strong balance sheet despite the recent acquisition [10]

Earlier this week, J&J (JNJ) began the first-quarter earnings season for the drug and biotech sector with better-than-expected results.J&J’s first-quarter adjusted earnings were $2.77 per share, which rose 2.2% from the year-ago period. Sales of $21.89 billion rose 2.4% from the year-ago quarter. Innovative Medicines segment sales rose 2.3% year over year to $13.87 billion. MedTech segment sales came in at $8.02 billion, up 2.5% from the year-ago period.The company raised its sales expectations for 2025 by ...

Johnson & Johnson (JNJ 0.22%) continues to treat its investors like royalty. The healthcare behemoth recently gave them another raise, increasing its dividend payment by 4.8%. That extended its dividend growth streak to an impressive 63 years in a row, keeping it in the elite group of Dividend Kings, companies with 50 or more years of annual dividend increases. That payout boost pushes the company's forward dividend yield up to 3.4%, more than double the S&P 500's dividend yield of 1.4%. Johnson & Johnson's ...

Johnson & Johnson (JNJ) reported stronger-than-expected first-quarter 2025 results. The world's biggest healthcare products maker continued with its long streak of earnings beat and also exceeded revenue estimates. It raised its revenue guidance for this year amid tariff chaos and boosted its quarterly dividends.Given the resilience of the drugmaker amid the potential tariff shifts under the Trump administration, investors should tap the company’s growth prospects through ETFs with the largest allocation to ...

Johnson & Johnson NYSE: JNJ delivered a solid earnings report on April 15. Johnson & Johnson TodayJNJJohnson & Johnson$153.66 -0.71 (-0.46%) 52-Week Range$140.68▼$169.99Dividend Yield3.23%P/E Ratio23.11Price Target$171.50Add to WatchlistOn the one hand, the company beat on the top and bottom lines and offered better-than-expected guidance. On the other hand, JNJ acknowledged the likelihood of a $400 million tariff hit on the company’s medical device business that will impact business in the short term. Tha ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Data and Key Metrics Changes - In Q1 2025, Johnson & Johnson reported worldwide sales of $21.9 billion, reflecting a 4.2% increase year-over-year despite a 470 basis point headwind from Stellara [36][37] - Net earnings for the quarter were $11 billion, with diluted earnings per share at $4.54, significantly up from $1.34 a year ago, primarily due to the reversal of a $7 billion talc settlement proposal [38][39] - Adjusted net earnings were $6.7 billion, with adjusted diluted earnings per share at $2.77, representing increases of 1.9% and 2.2% respectively compared to Q1 2024 [38][39] Business Line Data and Key Metrics Changes - Innovative Medicine achieved worldwide sales of $13.9 billion, up 4.2%, with U.S. growth at 6.3% and international growth at 1.5% [40] - Oncology products like Darzalex grew by 22.5%, while Carvicti saw over 100% growth, achieving sales of $369 million [40][41] - MedTech reported worldwide sales of $8 billion, a 4.1% increase, with U.S. growth at 5.1% and international growth at 3% [46] Market Data and Key Metrics Changes - U.S. sales growth was 5.9%, while international sales growth was 2.1%, positively impacted by acquisitions and divestitures [37] - The MedTech segment faced challenges due to one-time events and competitive pressures, particularly in orthopedics, which declined by 3.1% [50][46] Company Strategy and Development Direction - The company plans to invest over $55 billion in the U.S. over the next four years to enhance manufacturing and R&D capabilities [19][20] - Johnson & Johnson aims to exit non-strategic product lines and optimize select sites to improve growth and profitability, with a restructuring program expected to be completed by 2027 [60][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite challenges from Stellara biosimilars and Part D redesign, highlighting a 4.2% growth across Innovative Medicine [10][102] - The company anticipates higher growth in the second half of 2025, driven by new product launches and a strong pipeline [66][71] Other Important Information - The company announced a 4.8% increase in dividends, marking the 63rd consecutive year of dividend increases [22][64] - Johnson & Johnson reversed a $7 billion reserve related to the talc settlement, which is expected to positively impact capital allocation priorities [65] Q&A Session Summary Question: Impact of tariffs on guidance - Management explained that the $400 million in tariffs primarily affects MedTech and includes various tariffs from Mexico, Canada, and China, with limited price leverage available to mitigate these costs [82][86] Question: Gross margins in the quarter - Management noted that gross margins were impacted by Stellara's decline and Part D redesign, with expectations for improvement moving forward [93][96] Question: Stellara biosimilar erosion - Management confirmed that the impact of Stellara biosimilars was in line with expectations, with overall business growth remaining strong despite this headwind [99][102] Question: Recession impact on business - Management indicated that healthcare has proven to be more recession-proof than other industries, with a focus on monitoring job reports as a precursor to healthcare demand [110][112] Question: Section 232 potential pharma tariffs - Management is analyzing the potential impact of Section 232 tariffs and emphasized the importance of partnering with the administration to mitigate vulnerabilities in the healthcare supply chain [117][120]

Slide footer goes here if required 1 1st Quarter 2025 Earnings Call April 15, 2025 Cautionary note on Forward-looking statements This presentation contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The viewer is cautioned not to rely on these forward-looking statements. These statements are based on current expectatio ...

Johnson & Johnson’s (JNJ) first-quarter 2025 earnings came in at $2.77 per share, which beat the Zacks Consensus Estimate of $2.57. Earnings rose 2.2% from the year-ago period.Adjusted earnings exclude intangible amortization expense and special items and reversal of special charges, which were previously reserved for the bankruptcy resolution. Including these items, reported earnings were $4.54 per share, up 238.8% year over year.Sales of this drug and medical devices giant came in at $21.89 billion, which ...

Johnson & Johnson (JNJ) reported $21.89 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 2.4%. EPS of $2.77 for the same period compares to $2.71 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $21.62 billion, representing a surprise of +1.26%. The company delivered an EPS surprise of +7.78%, with the consensus EPS estimate being $2.57.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...