By tf-lawyer.com Johnson & Johnson has raised its profit and sales forecasts for 2024. The company reported robust sales of its oncology drugs, surpassing Wall Street expectations for the previous quarter.
The New Jersey-based healthcare giant has adjusted its profit per share forecast for this year upward by 10 cents to $10.15, excluding a 24-cent cost related to its acquisition of medical device manufacturer V-Wave.
Additionally, Johnson & Johnson anticipates this year’s sales will range between $89.4 billion and $89.8 billion, up from the earlier forecast of $89.2 billion to $89.6 billion.
However, the company now projects that its earnings per share will be between $9.86 and $9.96 this year, which includes costs related to acquisitions; this is a downward adjustment from the previous forecast of $10.00 to $10.10 per share.
According to LSEG data, Johnson & Johnson reported adjusted earnings per share of $2.42 for the third quarter, a 9% decline from the previous year but exceeding analysts’ average expectation of $2.21. The company’s sales for the last quarter reached $22.5 billion, exceeding the analysts’ forecast of $22.16 billion.
Sales of Johnson & Johnson’s oncology products grew nearly 19% globally this quarter, thanks largely to the success of its cancer treatment drug, Darzalex, which generated over $3 billion in sales—a 20.7% increase year-over-year, amounting to more than $500 million.
Analysts predict that Darzalex will contribute approximately $11 billion in revenue for Johnson & Johnson this year, an increase from the prior projection of $2.92 billion for the quarter.
LSEG data indicates that sales for Johnson & Johnson’s blockbuster psoriasis medication, Stelara, fell 6.6% in the third quarter to $2.68 billion, although it surpassed analysts’ expectations of $2.43 billion. Two-thirds of its sales came from the U.S. market.
Stelara has historically been a major driver of revenue growth for Johnson & Johnson, with analysts forecasting sales to exceed $10 billion this year. However, by 2025, sales may drop to around $7 billion as multiple generic versions of the drug could be launched in the U.S. market.
Earlier this year, the drug began facing competition from generics in markets such as Canada, the European Economic Area, and Japan.
Additionally, the company’s cancer therapy, Carvykti, generated $286 million in sales, surpassing expectations of $239 million. However, supply constraints have limited Carvykti’s sales, and the company is working to enhance production capacity at its facilities in New Jersey and Belgium.
LSEG data shows that Johnson & Johnson’s medical technology division experienced a 5.8% sales increase this quarter, reaching nearly $7.9 billion, though it fell short of analysts’ expectations of $8.05 billion.
