Multinational healthcare and pharmaceutical giant Johnson & Johnson (JNJ) reported mixed results from Q1 2024, leading to the share price dropping during Tuesday’s trading.
Johnson & Johnson Shares Drop After Mixed Results
The share price dropped by more than 2%, while the overall S&P 500 declined by just 0.2% on the same day. JNJ reported sales of $21.38bn in the first quarter of 2024, which represents a 2% increase on a year-on-year basis. The firm’s net income rose by close to 4%, giving a total of $6.58bn, which is $2.71 per share.
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While these results are reasonably good, analysts were left disappointed that the company failed to hit the $21.40bn sales figure estimated beforehand. On the other hand, JNJ beat the $2.64 that was predicted as the net income per share. The firm’s chief executive officer Joaquin Duato said:
Johnson & Johnson’s solid first quarter performance reflects our sharpened focus and the progress in our portfolio and pipeline.
Sales in medical devices rebounded in the last quarter, with older adults programming non-urgent surgeries that had been deferred due to the COVID-19 pandemic.
The company’s full-year forecast now has sales of $88bn and $88.4bn, changing from the previous expectation of between $87.8bn and $88.6bn. It has also altered the full-year adjusted earnings estimate from between $10.55 and $10.75 per share to a new forecast of $10.57 to $10.72.
