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Johnson & Johnson (NYSE:JNJ) reported fourth-quarter earnings and sales that exceeded analysts’ expectations, driven by strong demand for its cancer treatments and contributions from its recent acquisition of Shockwave Medical.
Q4 Highlights
- Revenue: $22.52 billion, a 5.3% year-over-year increase.
- Adjusted EPS: $2.04 per share, down 11% YoY but above analysts’ expectations of $2.01.
- Cancer Drug Sales: Up 19%, led by the multiple myeloma treatment Darzalex, which saw a nearly 21% surge to over $3 billion.
Key Factors Behind the Performance
- Cancer Treatments Driving Growth:
- The oncology portfolio continued to perform strongly, particularly with Darzalex, which remains a major revenue driver.
- Shockwave Medical Acquisition:
- The $13.1 billion acquisition of Shockwave Medical contributed $258 million in quarterly sales. CFO Joe Wolk noted the deal significantly bolstered the company’s top line.
- Medical Technology and Innovative Medicine Units:
- Growth in these divisions helped counteract headwinds in other areas.
- Stelara Sales Decline:
- Sales of Stelara, a treatment for psoriasis, dropped 14.7%, impacted by the launch of biosimilar competitors in several markets. The downward pressure is expected to continue with additional biosimilars entering the U.S. market.
2025 Outlook
- Full-Year Revenue Guidance: $90.9 billion to $91.7 billion.
- Adjusted EPS Guidance: $10.75 to $10.95.
- Both forecasts are above market expectations, reflecting management’s confidence in sustained growth.
Earnings Impact
The adjusted earnings figure included a $0.22 impairment charge related to J&J’s acquisition of V-Wave, a medical device manufacturer. Despite this one-time cost, the company delivered results that surpassed projections.
Strategic Outlook
Johnson & Johnson’s focus on high-growth therapeutic areas like oncology and investments in medical technology is paying off. While biosimilar competition poses challenges, the company’s diversified portfolio and strategic acquisitions position it well for continued growth.
Investors will be closely watching the company’s ability to manage competition and expand its market share in key therapeutic segments in 2025.
