Latest news with #STELARA
Yahoo
09-05-2025
- Business
- Yahoo
Johnson & Johnson (NYSE:JNJ) Announces Positive Trial Results Amid Legal Setback
Johnson & Johnson recently announced promising Phase 3 results for icotrokinra, a new investigational treatment for psoriasis, while facing legal challenges from a jury awarding a $3 million verdict linked to baby powder use. These developments coincided with a 3.77% rise in the company's stock over the past month. This price movement reflects broader market trends, as the Dow Jones was relatively flat amid ongoing U.S.-China tariff discussions. Johnson & Johnson's positive earnings report and dividend increase likely added weight to the company's price gains, aligning with overall market stability. Buy, Hold or Sell Johnson & Johnson? View our complete analysis and fair value estimate and you decide. Explore 22 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The recent announcement of Johnson & Johnson's promising Phase 3 results for its investigational psoriasis treatment, icotrokinra, offers potential growth opportunities in its Innovative Medicine sector. This could positively influence revenue and earnings forecasts, potentially offsetting challenges such as the loss of exclusivity for STELARA. The company's previous strategic investments and expansion initiatives, especially in MedTech, aim to buffer these headwinds, leveraging their substantial investment in the U.S. to foster operational efficiency. Over the past five years, Johnson & Johnson's total shareholder return, including share price and dividends, was 21.32%. This contrasts its performance against the past year's underperformance, where the company lagged behind the US market's 8.2% growth while exceeding the Pharmaceuticals industry's negative 8.8% return. Analysts' consensus price target of US$169.98 reflects a 9.1% potential upside from the current share price, suggesting room for growth, assuming revenue and earnings projections materialize. Recent litigation outcomes, like the $3 million verdict associated with baby powder, continue to pose financial risks but have thus far been outweighed by positive developments and earnings support. In light of our recent valuation report, it seems possible that Johnson & Johnson is trading behind its estimated value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:JNJ. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
09-05-2025
- Business
- Yahoo
Johnson & Johnson (NYSE:JNJ) Announces Positive Trial Results Amid Legal Setback
Johnson & Johnson recently announced promising Phase 3 results for icotrokinra, a new investigational treatment for psoriasis, while facing legal challenges from a jury awarding a $3 million verdict linked to baby powder use. These developments coincided with a 3.77% rise in the company's stock over the past month. This price movement reflects broader market trends, as the Dow Jones was relatively flat amid ongoing U.S.-China tariff discussions. Johnson & Johnson's positive earnings report and dividend increase likely added weight to the company's price gains, aligning with overall market stability. Buy, Hold or Sell Johnson & Johnson? View our complete analysis and fair value estimate and you decide. Explore 22 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The recent announcement of Johnson & Johnson's promising Phase 3 results for its investigational psoriasis treatment, icotrokinra, offers potential growth opportunities in its Innovative Medicine sector. This could positively influence revenue and earnings forecasts, potentially offsetting challenges such as the loss of exclusivity for STELARA. The company's previous strategic investments and expansion initiatives, especially in MedTech, aim to buffer these headwinds, leveraging their substantial investment in the U.S. to foster operational efficiency. Over the past five years, Johnson & Johnson's total shareholder return, including share price and dividends, was 21.32%. This contrasts its performance against the past year's underperformance, where the company lagged behind the US market's 8.2% growth while exceeding the Pharmaceuticals industry's negative 8.8% return. Analysts' consensus price target of US$169.98 reflects a 9.1% potential upside from the current share price, suggesting room for growth, assuming revenue and earnings projections materialize. Recent litigation outcomes, like the $3 million verdict associated with baby powder, continue to pose financial risks but have thus far been outweighed by positive developments and earnings support. In light of our recent valuation report, it seems possible that Johnson & Johnson is trading behind its estimated value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:JNJ. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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
Yahoo
16-04-2025
- Business
- Yahoo
Johnson & Johnson (JNJ) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amid STELARA ...
Worldwide Sales: $21.9 billion, increased 4.2% despite a 470 basis point headwind from STELARA. Net Earnings: $11 billion, with diluted earnings per share of $4.54. Adjusted Net Earnings: $6.7 billion, with adjusted diluted earnings per share of $2.77, up 1.9% and 2.2% respectively. Innovative Medicine Sales: $13.9 billion, increased 4.2% despite an 810 basis point headwind from STELARA. MedTech Sales: $8 billion, increased 4.1%. Free Cash Flow: Approximately $3.4 billion. Dividend Increase: 4.8%, marking the 63rd consecutive year of increases. Operational Sales Growth Guidance: Increased by $700 million, now expected to be 3.3% to 4.3% for the full year. Adjusted Operational Sales Growth: 2% to 3% compared to 2024. Interest Income and Expense: Net income of $128 million, down from $209 million in Q1 2024. Effective Tax Rate: 19.3%, up from 12.4% in the same period last year. Warning! GuruFocus has detected 4 Warning Signs with BOM:540133. Release Date: April 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Johnson & Johnson (NYSE:JNJ) delivered strong operational sales growth of 4.2% in Q1 2025, despite headwinds from STELARA's loss of exclusivity. The company's Innovative Medicine sector achieved 4.2% operational sales growth, with 11 key brands growing double digits. MedTech sector showed 4.1% operational sales growth, driven by strong performance in cardiovascular businesses and surgical vision. Johnson & Johnson (NYSE:JNJ) announced a commitment to invest over $55 billion in the US over the next four years, enhancing manufacturing and R&D capabilities. The company increased its dividend for the 63rd consecutive year, reflecting its commitment to returning capital to shareholders. STELARA faced an approximate 810 basis points headwind due to biosimilar competition, impacting overall sales growth. Gross margins were below recent trends, affected by the loss of exclusivity for STELARA and Part D redesign. The orthopedic segment experienced a decline of 3.1%, impacted by competitive pressures and one-time events. Tariffs, particularly those related to China, are expected to have a significant impact on costs, with a $400 million impact anticipated in 2025. The company faces ongoing litigation challenges related to the Talc bankruptcy ruling, which could impact future financial performance. Q: Joe, you mentioned $400 million in tariffs in the 2025 guidance. What is that on an annualized basis, and how do you plan to mitigate it? A: Joseph Wolk, CFO, explained that the $400 million primarily involves MedTech tariffs, including those from Mexico, Canada, and China. The most significant impact comes from US-origin products shipped to China. Mitigation strategies are limited due to existing contractual agreements, but tax policy is seen as a more effective tool than tariffs for building US manufacturing capacity. Q: Can you explain the drivers behind the lower gross margins this quarter and the outlook going forward? A: Joseph Wolk, CFO, noted that the decline was due to the impact of STELARA's loss of exclusivity, Part D redesign, and unfavorable currency effects. He expects margins to improve by 100 to 150 basis points moving forward, despite the tariff impacts. Q: How do you see the erosion of STELARA being offset by other brands like TREMFYA? A: Jennifer Taubert, EVP, Worldwide Chairman, Innovative Medicine, stated that the impact of STELARA's loss was in line with expectations, and the business excluding STELARA grew over 12%. TREMFYA is gaining traction, especially with recent approvals in inflammatory bowel disease, and is expected to offset some of the erosion. Q: How recession-proof is Johnson & Johnson's business, and which areas might be most at risk? A: Joseph Wolk, CFO, mentioned that healthcare is generally more recession-proof than other industries. While elective procedures might be delayed, they are not abandoned. The company monitors job reports as an indicator of healthcare coverage and demand. Q: Can you provide more details on the orthopedic sales decline and the recovery outlook? A: Tim Schmid, EVP, Worldwide Chairman of MedTech, explained that the decline was due to one-time events like revenue recognition changes and fewer selling days. Despite competitive pressures, the company expects improved performance due to new product launches and commercial execution. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Johnson & Johnson (JNJ) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amid STELARA ...
Worldwide Sales: $21.9 billion, increased 4.2% despite a 470 basis point headwind from STELARA. Net Earnings: $11 billion, with diluted earnings per share of $4.54. Adjusted Net Earnings: $6.7 billion, with adjusted diluted earnings per share of $2.77, up 1.9% and 2.2% respectively. Innovative Medicine Sales: $13.9 billion, increased 4.2% despite an 810 basis point headwind from STELARA. MedTech Sales: $8 billion, increased 4.1%. Free Cash Flow: Approximately $3.4 billion. Dividend Increase: 4.8%, marking the 63rd consecutive year of increases. Operational Sales Growth Guidance: Increased by $700 million, now expected to be 3.3% to 4.3% for the full year. Adjusted Operational Sales Growth: 2% to 3% compared to 2024. Interest Income and Expense: Net income of $128 million, down from $209 million in Q1 2024. Effective Tax Rate: 19.3%, up from 12.4% in the same period last year. Warning! GuruFocus has detected 4 Warning Signs with BOM:540133. Release Date: April 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Johnson & Johnson (NYSE:JNJ) delivered strong operational sales growth of 4.2% in Q1 2025, despite headwinds from STELARA's loss of exclusivity. The company's Innovative Medicine sector achieved 4.2% operational sales growth, with 11 key brands growing double digits. MedTech sector showed 4.1% operational sales growth, driven by strong performance in cardiovascular businesses and surgical vision. Johnson & Johnson (NYSE:JNJ) announced a commitment to invest over $55 billion in the US over the next four years, enhancing manufacturing and R&D capabilities. The company increased its dividend for the 63rd consecutive year, reflecting its commitment to returning capital to shareholders. STELARA faced an approximate 810 basis points headwind due to biosimilar competition, impacting overall sales growth. Gross margins were below recent trends, affected by the loss of exclusivity for STELARA and Part D redesign. The orthopedic segment experienced a decline of 3.1%, impacted by competitive pressures and one-time events. Tariffs, particularly those related to China, are expected to have a significant impact on costs, with a $400 million impact anticipated in 2025. The company faces ongoing litigation challenges related to the Talc bankruptcy ruling, which could impact future financial performance. Q: Joe, you mentioned $400 million in tariffs in the 2025 guidance. What is that on an annualized basis, and how do you plan to mitigate it? A: Joseph Wolk, CFO, explained that the $400 million primarily involves MedTech tariffs, including those from Mexico, Canada, and China. The most significant impact comes from US-origin products shipped to China. Mitigation strategies are limited due to existing contractual agreements, but tax policy is seen as a more effective tool than tariffs for building US manufacturing capacity. Q: Can you explain the drivers behind the lower gross margins this quarter and the outlook going forward? A: Joseph Wolk, CFO, noted that the decline was due to the impact of STELARA's loss of exclusivity, Part D redesign, and unfavorable currency effects. He expects margins to improve by 100 to 150 basis points moving forward, despite the tariff impacts. Q: How do you see the erosion of STELARA being offset by other brands like TREMFYA? A: Jennifer Taubert, EVP, Worldwide Chairman, Innovative Medicine, stated that the impact of STELARA's loss was in line with expectations, and the business excluding STELARA grew over 12%. TREMFYA is gaining traction, especially with recent approvals in inflammatory bowel disease, and is expected to offset some of the erosion. Q: How recession-proof is Johnson & Johnson's business, and which areas might be most at risk? A: Joseph Wolk, CFO, mentioned that healthcare is generally more recession-proof than other industries. While elective procedures might be delayed, they are not abandoned. The company monitors job reports as an indicator of healthcare coverage and demand. Q: Can you provide more details on the orthopedic sales decline and the recovery outlook? A: Tim Schmid, EVP, Worldwide Chairman of MedTech, explained that the decline was due to one-time events like revenue recognition changes and fewer selling days. Despite competitive pressures, the company expects improved performance due to new product launches and commercial execution. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
