Latest news with #JoeWolk
Yahoo
23-04-2025
- Business
- Yahoo
JNJ Q1 Earnings: Pipeline Progress and MedTech Execution Drive Guidance Above Expectations
Multinational healthcare company Johnson & Johnson (NYSE:JNJ) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 2.4% year on year to $21.89 billion. The company's full-year revenue guidance of $92 billion at the midpoint came in 1.8% above analysts' estimates. Its non-GAAP profit of $2.77 per share was 7.3% above analysts' consensus estimates. Is now the time to buy JNJ? Revenue: $21.89 billion vs analyst estimates of $21.56 billion (2.4% year-on-year growth, 1.5% beat) Adjusted EPS: $2.77 vs analyst estimates of $2.58 (7.3% beat) Adjusted EBITDA: $9.16 billion vs analyst estimates of $8.39 billion (41.8% margin, 9.2% beat) The company slightly lifted its revenue guidance for the full year to $92 billion at the midpoint from $91.3 billion Management reiterated its full-year Adjusted EPS guidance of $10.60 at the midpoint Operating Margin: 28.3%, in line with the same quarter last year Free Cash Flow Margin: 43.2%, up from 13.3% in the same quarter last year Organic Revenue rose 3.3% year on year (5.2% in the same quarter last year) Market Capitalization: $380.2 billion Johnson & Johnson's latest quarter was shaped by ongoing growth in its innovative medicine and MedTech segments, as highlighted on the company's earnings call. CEO Joaquin Duato cited 4.2% operational sales growth in innovative medicine, despite the negative impact from biosimilar competition for STELARA, and emphasized the company's strong product launches and portfolio diversification. MedTech's growth was supported by contributions from recent acquisitions and new product introductions, offsetting short-term headwinds in orthopedics and procedure volumes. Looking ahead, management identified 2025 as a catalyst year, focusing on expanding key brands, advancing the pipeline, and executing on recently closed acquisitions. The company reaffirmed its full-year adjusted earnings guidance, while CFO Joe Wolk said the updated revenue outlook incorporates the addition of Caplyta from the IntraCellular acquisition. Management flagged the importance of mitigating new tariffs, navigating the loss of exclusivity for major products, and sustaining growth from its expanding medicine pipeline. Johnson & Johnson's management attributed the quarter's outperformance to both resilience in innovative medicine and robust execution in MedTech. Their remarks underscored the effects of biosimilar competition, new product launches, and strategic investments: STELARA biosimilar headwinds managed: Despite anticipated declines from biosimilar competition and U.S. Medicare Part D redesign, management emphasized that operational sales growth in innovative medicine was driven by double-digit expansion in eleven core brands, with Tremfya and DARZALEX noted for strong demand. Key launches in immunology and oncology: Tremfya's new indications in inflammatory bowel disease and Crohn's disease accelerated growth. Meanwhile, expanded European approval and new data for DARZALEX and riboflavin plus LASCRUZ in oncology highlighted the pipeline's contribution to sales. MedTech growth from acquisitions and new products: The acquisitions of Abiomed and Shockwave were cited as meeting expectations and broadening the MedTech portfolio. Newly launched devices, such as the Javelin Peripheral IVL catheter and expanded robotic surgery trials, contributed to segment growth. Operational and margin pressures addressed: Management discussed cost pressures from product mix, tariffs, and acquisition-related expenses, but pointed to spending discipline and a restructuring program in surgery as measures to improve profitability by 2027. Capital allocation and investment priorities: The company reiterated its commitment to R&D, announcing plans to invest over $55 billion in U.S. manufacturing and technology over four years, alongside a dividend increase for the sixty-third consecutive year. Management's outlook for 2025 anticipates operational sales growth between 3.3% and 4.3% (midpoint $92 billion) and maintains adjusted earnings per share guidance at a midpoint of $10.60, as the company integrates new assets and navigates market headwinds. Pipeline and new indications: The expansion of Tremfya, Caplyta, and upcoming filings for Ichotrochindra in autoimmune diseases are expected to offset the impact of lost exclusivity in other key products, supporting revenue growth. Tariffs and margin management: Newly imposed tariffs, particularly affecting MedTech exports to China, present a $400 million headwind; management is pursuing production shifts and advocating for favorable tax policies to mitigate this impact. MedTech portfolio optimization: Restructuring and exiting non-strategic product lines, combined with investment in higher-growth devices, are expected to support longer-term margin improvement and segment growth. Larry Biegelsen (Wells Fargo): Asked about the $400 million tariff impact and mitigation strategies; management said tariffs primarily hit MedTech exports to China and are seeking production adjustments rather than price increases. Chris Schott (JPMorgan): Inquired about gross margin drivers; CFO Joe Wolk cited product mix, STELARA's decline, and currency headwinds, and noted that consensus estimates were likely too optimistic. Asad Hader (Goldman Sachs): Requested quantitative detail on STELARA biosimilar erosion; management reiterated guidance based on the HUMIRA precedent and emphasized offsetting growth in other brands. Joanne Wuensch (Citibank): Questioned the orthopedics segment's underperformance and recovery timeline; management acknowledged competitive pressures and expected innovation and new launches to drive improvement. Matt Miksic (Barclays): Sought clarity on immunology opportunities, especially for Tremfya and Ichotrochindra; executives highlighted strong initial launches and market expansion potential for both products. In coming quarters, the StockStory team will be monitoring (1) the rollout and uptake of new indications for Tremfya and Caplyta, (2) the pace of MedTech's margin improvement and execution of the surgery restructuring plan, and (3) progress on upcoming regulatory submissions and product launches, especially for Ichotrochindra in autoimmune diseases. The handling of tariffs and biosimilar competition will also be key themes to watch. Could JNJ achieve its goals and exceed our expectations? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Globe and Mail
16-04-2025
- Business
- Globe and Mail
JNJ Stock Slips as Investors Worry about the Impact of Tariffs
Johnson & Johnson (JNJ) beat Wall Street expectations in its first-quarter earnings report and raised its 2025 sales forecast by $700 million, even though sales are expected to dip due to the loss of patent protection on Stelara, a key drug. Despite the strong results, the healthcare company's stock slipped slightly on Tuesday due to concerns about President Trump's tariffs on its medical devices. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Executives said that the biggest tariff-related risks come from China, Canada, and Mexico. CFO Joe Wolk estimated about $400 million in costs tied to tariffs that will mainly affect the Medical Devices segment. He also said that most of the impact comes from products shipped from the U.S. to China and that these extra costs will show up in future financial reports. Goldman Sachs analyst Asad Haider noted that JNJ has managed well by cutting research expenses and using its size to handle the uncertainty. However, J&J faces other challenges. The company is under pressure from ongoing lawsuits over its talc products. After a judge rejected a $10 billion talc settlement proposal, J&J returned $7 billion of that sum to its balance sheet and will now pursue a different legal strategy, with key court hearings expected later this year. Analysts believe the company is preparing to challenge plaintiffs' expert testimony in an effort to contain future legal risk. Is JNJ Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on JNJ stock based on seven Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average JNJ price target of $168.79 per share implies 9.6% upside potential. See more JNJ analyst ratings
Axios
15-04-2025
- Business
- Axios
Pharma tariffs could be a generics problem
The looming prospect of American tariffs on pharmaceuticals would likely hit generic drugmakers the hardest, Johnson & Johnson's CFO told Bloomberg today. Why it matters: 90% of prescriptions are generic drugs or biosimilars, according to the Association for Accessible Medicines, which represents generic drugmakers. Catch up quick: The Trump administration on Monday announced an investigation into drug imports in a likely precursor to tariffs, which the president has promised as a way to boost American production. But J&J CFO Joe Wolk said the probe — which is centered on impacts to U.S. national security — would likely show that most U.S. drug imports are generics, not the type of complex brand-name treatments made by J&J. By the numbers: About 80% of generics are finished in foreign countries, with even more getting their active pharmaceutical ingredient from outside the U.S., according to Stephen W. Schondelmeyer, co-principal investigator of the Resilient Drug Supply Project at the University of Minnesota's Center for Infectious Disease Research and Policy. 32 of the top 100 brand-name drugs are finished in the U.S. Zoom in: J&J management downplaying the impact of tariffs is "an important positive development for perception about the threat to JNJ and the branded biopharma industry at large," Leerink Partners analyst David Risinger writes today in a research note. Yes, but: J&J CEO Joaquin Duato warned on an earnings call Tuesday that " tariffs can create disruptions in the supply chain leading to shortages." He called for tax policy changes to bolster American drug manufacturing instead of tariffs. Carrots vs sticks Alex Schriver, senior VP of public affairs at PhRMA, the pharmaceutical industry's trade group, said this week in a statement that "we share President Trump's goal of revitalizing American manufacturing, and our members continue to expand their U.S. footprint, driven in part by tax policies President Trump put in place during his first term." He added that "medicines have historically been excluded from tariffs because they can lead to higher costs and shortages of life-saving medicines." J&J itself has cited the U.S. tax policy changes in 2017 as a driver for $55 billion in planned investments in the U.S. over the next four years, in part to bolster manufacturing. The Association for Accessible Medicines did not respond to a request for comment.
Reuters
15-04-2025
- Business
- Reuters
J&J beats Wall Street quarterly sales and profit estimates on cancer drug sales
April 15 (Reuters) - Johnson & Johnson (JNJ.N), opens new tab on Tuesday reported first-quarter revenue and profit above Wall Street estimates, driven again by strong sales of its cancer treatments including multiple myeloma medicine Darzalex. J&J's quarterly sales stood at $21.89 billion, up 2.4% from a year ago and above analysts' expectations of $21.56 billion, according to LSEG data. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. On an adjusted basis, the company earned $2.77 per share in the quarter, 2.2% higher than the previous year and above analysts' estimates of $2.59 per share. Quarterly sales for the company's innovative medicines unit rose 2.3% to $13.87 billion, beating analyst expectations of $13.43 billion, while quarterly medtech revenue stood at $8.02 billion, up 2.5% on the previous year but below Wall Street estimates of $8.17 billion. J&J Chief Financial Officer Joe Wolk said in an interview that the company still expected, as indicated in its January guidance, that its medtech business would perform better in the second half of the year. Innovative medicine revenue was buttressed by a 20% increase in Darzalex sales on the previous year. Darzalex, a blood cancer therapy launched in 2015, brought in first-quarter sales of $3.24 billion, compared to analysts' expectations of $3.05 billion. The company's cancer cell therapy Carvykti, which it makes in partnership with Legend Biotech (LEGN.O), opens new tab, brought in sales of $369 million, above estimates of $324 million. Quarterly sales of J&J's cancer drugs rose nearly 18% worldwide to $5.68 billion. Sales of the drugmaker's blockbuster psoriasis treatment Stelara fell more than 33% to $1.63 billion in the first quarter, although beating estimates of $1.42 billion, according to LSEG data. Close copies of Stelara launched in Europe, Canada and few other markets last year, while biosimilar rivals in the U.S. launched this year. J&J also raised its annual sales forecast by $700 million at the midpoint while lowering its profit outlook, saying it reflects the impact of tariffs imposed by the Trump administration and dilution from its $14.6 billion deal to buy neurological drugmaker Intra-Cellular. The company now expects sales of $91.6 billion to $92.4 billion, compared to its previous forecast of $90.9 billion and $91.7 billion, driven by its purchase of Intra-Cellular's top schizophrenia drug Caplyta. J&J expects to earn $10.50 to $10.70 per share on an adjusted basis compared to its previous guidance of $10.75 to $10.95. Wolk said the profit adjustment takes account of around $400 million that is expected to be incurred in J&J's medtech business due to tariffs currently in place, including those on China and Mexico. "That is more of a second quarter (and) forward event ... and covers all the programs in place today even if paused," he said.
