ETFs in Focus Post JNJ's Q1 Earnings Beat, Dividend Hike

Core Insights - Johnson & Johnson (JNJ) reported stronger-than-expected first-quarter 2025 results, continuing its streak of earnings beats and exceeding revenue estimates [1][3] - The company raised its revenue guidance for fiscal 2025 amid tariff challenges and increased its quarterly dividends [1][5][6] Financial Performance - JNJ's first-quarter earnings per share were $2.77, beating the Zacks Consensus Estimate of $2.57 and improving 2.2% year-over-year [3] - Revenues grew 2.4% year-over-year to $21.89 billion, surpassing the Zacks Consensus Estimate of $21.62 billion [3] - Innovative Medicines sales advanced 4.2%, while MedTech device sales jumped 4.1% [4] - Sales of Darzalex, a blood cancer treatment, increased 20% to $3.2 billion, and Xarelto sales rose 33% year-over-year to $690 million [4] - However, Stelara sales declined 34% to $1.6 billion due to new biosimilars entering the market, and Invega Sustenna sales dropped 15% to $903 million [4] Revenue Guidance - JNJ raised its revenue guidance for fiscal 2025 to $91.0-$91.8 billion from $89.2-$90.0 billion, indicating year-over-year growth of 2.6%-3.6% [5] - The new guidance reflects the addition of Caplyta following the $14.6 billion acquisition of Intra-Cellular Therapies [5] - The company maintained its adjusted earnings per share guidance in the range of $10.50-$10.70, accounting for tariff costs and dilution from the acquisition [5] Dividend Increase - JNJ increased its quarterly dividend to $1.30 per share from $1.24 per share, marking the 63rd consecutive year of dividend increases [6] - The annual dividend now totals $5.20 per share compared to the previous $4.96 per share [6] ETFs with JNJ Exposure - Investors are encouraged to consider ETFs with significant allocations to JNJ, including iShares U.S. Pharmaceuticals ETF (IHE), iShares U.S. Healthcare ETF (IYH), First Trust Nasdaq Pharmaceuticals ETF (FTXH), Health Care Select Sector SPDR Fund (XLV), and VanEck Vectors Pharmaceutical ETF (PPH) [2] - JNJ accounts for 24.5% of IHE, 7.2% of IYH, 7.8% of FTXH, 7.4% of XLV, and 6.7% of PPH [7][9][12][13][15]