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Key Takeaways
- Johnson & Johnson on Wednesday reported second-quarter earnings with sales topping estimates.
- However, profits fell short of projections thanks to one-time costs like legal fees and asset amortization.
- The company lifted its full-year sales guidance, while also lowering profit estimates.
Johnson & Johnson ( JNJ ) reported mixed second-quarter results Wednesday, as one-time costs caused the company to miss profit estimates despite better-than-expected sales.
Sales of the company’s pharmaceuticals and medical devices rose just over 4% from the same time last year to $22.45 billion, better than the $22.38 billion analysts had expected, according to consensus estimates compiled by Visible Alpha. However, profits fell short of estimates due to various one-time costs like legal fees and asset amortization costs .
Johnson & Johnson reported $4.69 billion in net income, short of the $5.66 billion analysts had expected. After accounting for the one-time expenses, however, the company posted $6.84 billion in adjusted net income, or $2.82 per share, better than the $6.59 billion and $2.71 per share analysts had anticipated.
JNJ Lifts Full-Year Sales Guidance But Lowers Profit Projections
The company also shifted its full-year guidance from the last time it updated the projections to account for the financial impact of recent acquisitions , raising its expectations for sales while also projecting lower profits than it had previously.
For the full fiscal year, Johnson & Johnson projects operational sales from $89.2 billion to $89.6 billion, above the previous range of $88.7 billion to $89.1 billion guided in April. However, the company also lowered projections for adjusted earnings per share (EPS ) to a range of $9.97 to $10.07 from $10.57 to $10.72.
Analysts currently project sales of $88.58 billion and adjusted EPS of $10.42 for the full year, according to estimates compiled by Visible Alpha.
Shares rose 2% as markets opened Wednesday to $154.24 but are slightly negative for 2024.