For Johnson & Johnson (NYSE: JNJ), investment in the pipeline and withdrawal of lower priority businesses remains central to the strategy for the new fiscal year. Healthcare Behemoth is streamlining major transformations, operations and expanding its diversified portfolio. The company is preparing to report results for the first three months of fiscal year 2025.
Johnson & Johnson has been hiking dividends regularly over the past few years and currently offers a 3.2% yield, far surpassing the S&P 500. After last year’s mixed performance, the stock entered 2025 with a positive note. However, momentum has declined over the last few weeks, with JNJ currently trading at a level seen 12 months ago.
Q1 Tap Report
The first quarter report is scheduled to be released on April 15th at 6:20am ET. On average, analysts following the business forecast profits of $2.6 per share and revenues of $21.6 billion for the March quarter. In a comparable quarter of 2024, the company acquired $2.71 per share against revenue of $21.38 billion. Johnson & Johnson has maintained the distinction of consistently breaking quarterly revenue estimates for over a decade. In the most recent quarter, revenues also surpassed expectations, marking the third beat in a row.
Last year, the company set aside about $50 billion for research and development and M&A. Intracellular therapy. Recently, it announced more than $55 billion in manufacturing, R&D and technology investments in the US over the next four years. Management said previous transactions including acquisition of shock wavev-wave, and Ambrx We have been able to shift our portfolio further to meet unmet needs of high-growth and high-invasive markets.
“We have turned to 2025. And we hope to overcome the 3% sales growth rate associated with US biosimilar entries for Stelara, as previously guided at the end of 2023, and overcome the effects of Part D’s redesign and ongoing macroeconomic pressures. Perhaps even more impressive: losing the exclusivity of billions of dollars of products.” Joaquin Duato, the company’s CEO, said in a fourth quarter revenue call.
Drugmakers hope that acquisitions and divestitures will affect operational growth in their approximately 50 basis points in fiscal 2025. Management maintains a positive outlook despite forecasting a slowdown in China’s sales and headwinds from the competition for one biosimilar of its lead products. This is a biosimilar that has been approved for its hit drug Stelara and is expected to be released in the US and Europe soon.
Mixed Q4
In the December quarter, net income fell 17% year-on-year to $3.4 billion or $1.41 per share. On an adjusted basis, earnings per share fell 11% to $2.04. Meanwhile, sales in the fourth quarter increased 5.3% from last year to $22.5 billion. Innovation Medicine Sales and MedTech It has increased by 4% and 7% respectively. Operational sales growth rate for the fourth quarter was 6.7%. Management reports for fiscal year 2025 range from $89.2 billion to $900 billion, with earnings per share expected to range from $10.50 to $10.70.
Johnson & Johnson’s average stock price over the past 52 weeks was $154.88. The stock closed its final trading session at the lowest level in about two months, reversing some of its previous earnings.
