Johnson & Johnson Drops Despite Hiked Full-Year Outlook

Johnson & Johnson (NYSE: JNJ) shares are trading lower on Tuesday despite the company reporting better-than-expected earnings and revenue for the first quarter of 2023. Moreover, JNJ hiked its full-year outlook amid robust growth across all of its businesses.

The company’s shares fell by 2.5% at the market open despite the positive report. They are down 8.5% year-to-date.

J&J reported adjusted earnings per share (EPS) of $2.68, topping the consensus estimates of $2.50 per share. Revenue came in at $24.75 billion, while analysts were looking for $23.67 billion.

“Our first quarter results demonstrate strong performance across all three segments of our business and reflect the dedication of Johnson & Johnson colleagues around the world,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer.  “With this momentum, I look forward to the remainder of the year, one filled with exciting catalysts that will create both near- and long-term value for patients and all of our stakeholders.”

The pharmaceutical giant reported a net loss of $68 million, or 3 cents per share, stemming from its talc baby powder liabilities and costs related to the impending spin-off of its consumer health unit. JNJ added it spent as much as $6.9 billion in litigation costs in the first quarter only.

In line with Duato’s comments, JNJ boosted its full-year forecast on the back of the strong Q1 results. The company now expects to generate $98.4 billion in FY sales, up or down $500 million. It had previously expected it will generate a billion less in FY revenue.

Similarly, the FY profit forecast is seen between $10.60 and $10.70 per share, up from the previous range of $10.45-10.65. Both updated forecasts are better than analysts were looking for – EPS of $10.52 on revenue of $97.73 billion.