J&J's Q4 Earnings Beat, Stock Down on Tepid 2025 Sales Guidance

Core Insights - Johnson & Johnson (J&J) reported fourth-quarter 2024 earnings of $2.04 per share, exceeding the Zacks Consensus Estimate of $2.00, but reflecting a 10.9% decline year over year [1] - Total sales for the quarter reached $22.52 billion, slightly surpassing the Zacks Consensus Estimate of $22.51 billion, with a year-over-year increase of 5.3% [2] Financial Performance - Adjusted earnings, excluding intangible amortization and special items, were reported at $1.41 per share, down 17.1% from the previous year [1] - Full-year 2024 sales increased by 4.3% to $88.82 billion, slightly missing the Zacks Consensus Estimate of $88.84 billion [16] Segment Performance - The Innovative Medicines segment saw sales rise 4.4% year over year to $14.33 billion, driven by key products like Darzalex and new drugs such as Carvykti and Tecvayli [5][6] - MedTech segment sales reached $8.19 billion, up 6.7% year over year, but missed the Zacks Consensus Estimate of $8.25 billion [14] Market Dynamics - Domestic sales increased by 10% to $13.2 billion, while international sales declined by 0.7% to $9.32 billion, impacted by currency fluctuations [3] - The Innovative Medicines unit outperformed expectations, while the MedTech unit faced challenges, particularly in the Asia Pacific region due to competitive pressures and government cost containment efforts in China [15][19] Future Outlook - For 2025, J&J expects sales in the range of $89.2 billion to $90.0 billion, which is below the Zacks Consensus Estimate of $91.2 billion, indicating a growth of 0.5%-1.5% [17] - Adjusted earnings per share for 2025 are projected to be between $10.50 and $10.70, suggesting a growth of 5.2% to 7.2% [18] Strategic Moves - J&J has been active in acquisitions, including the recent agreement to acquire Intra-Cellular Therapies for approximately $14.6 billion, which will enhance its neuroscience pipeline [23][22]