Johnson & Johnson Q2 Earnings: Lifts Annual Outlook On Strong Sales Growth From MedTech Business

Johnson & Johnson JNJ has reported Q2 FY23 adjusted earnings of $2.80 per share, up 8.1% Y/Y and beating the consensus of $2.62.

Sales increased 6.3% to $25.5 billion, beating the consensus of $24.63 billion, with operational growth of 7.5 and adjusted operational growth of 6.2%. Operational growth, excluding COVID-19 Vaccine, of 8.9%.

"We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on Pharmaceutical and MedTech innovation," said Joaquin Duato, Chairman of the Board and Chief Executive Officer. 

Also Read: Drug Pricing Negotiation Program: Johnson & Johnson Joins Legal Battle Against US Government.

Pharmaceutical segment sales increased by 3.1% to $13.73 billion.

MedTech sales increased 12.9% to $7.79 billion. MedTech worldwide operational sales grew 14.7%, with the acquisition of Abiomed contributing 4.8%.

Consumer Health segment sales were up 7.7% to $4.01 billion.

Johnson & Johnson intends to "split off" Kenvue shares through an exchange offer as the form of its next step in the separation.

Outlook: Johnson & Johnson expects FY23 adjusted EPS of $10.70 - $10.80 compared to prior guidance of $10.60 - $10.70 and the consensus of $10.65.

The company expects sales of $99.3 billion – $100.3 billion compared to the previous guidance of $97.9 billion – $98.9 billion and the consensus of $98.96 billion.

J&J CFO Joseph Wolk told Reuters that Amgen Settlement gives them more confidence about hitting their 2025 $57B target For Pharma sales.

Price Action: JNJ shares are up 1.11% at $160.50 during the premarket session on the last check Thursday.