Latest news with #JoeWolk
The Star
5 days ago
- Business
- The Star
Johnson & Johnson lifts forecast on lower costs
J&J said it now expects about US$200mil in tariff-related costs this year, exclusively tied to its medical devices unit. — Reuters NEW YORK: Johnson & Johnson (J&J) has halved its expectations for costs this year related to new tariffs and raised its full-year sales and profit forecasts after a strong quarter for flagship cancer drug Darzalex and its cardiovascular devices. The company's shares rose 5.9% to US$164.29 in Wednesday's morning trade. J&J said it now expects about US$200mil in tariff-related costs this year, exclusively tied to its medical devices unit, saying it had benefited from the Trump administration's pause on China levies and other duties. It had previously pegged costs at about US$400mil starting in the second quarter (2Q25). J&J's chief financial officer Joe Wolk told Reuters the company was able to absorb those costs and still raise its profit outlook, adding that he expected the impact this year to be minimal. He noted that it was too soon to predict tariff impacts for 2026: 'It's such a fluid environment, we'll have to wait and see.' The company will look to reinvest the difference in its product pipeline, a J&J executive said during an investor call. Imports from most major trading partners are currently subject to levies of at least 10%, but in recent days US President Donald Trump has threatened 30% tariffs on the European Union and 50% on Brazil. Trump plans separate pharmaceutical tariffs and recently said they could be delayed, but eventually be as high as 200%. China is a key market for J&J's device business, although it does not reveal how much revenue it generates from the country. 'For J&J, it's mostly what they sell into China,' said Jeff Jonas, portfolio manager at Gabelli Funds, which owns shares of the company. Jonas added that while the final rate of tariffs remains unknown, J&J has made the necessary cost cuts to offset impact. The drug and medical device maker beat Wall Street expectations for 2Q25, posting adjusted earnings of US$2.77 per share versus analyst expectations of US$2.68 per share, according to data compiled by LSEG. Quarterly sales stood at US$23.74bil, beating analysts' expectations of US$22.84bil. Citing robust quarterly performance, J&J raised its 2024 sales forecast by about US$2bil and above analyst expectations of US$91.5bil, upping its range to US$93.2bil to US$93.6bil. J&J said it expects to earn US$10.80 to US$10.90 per share on an adjusted basis in 2025, compared with its previous forecast of US$10.50 to US$10.70 per share. JP Morgan analyst Chris Schott said in a note that J&J's roughly US 25 cents profit guidance boost outpaced expectations, but about 17 US cents of that comes from a weaker dollar. He added that he sees the drugmaker's core business as strong and on track for consistent 5% or more sales growth. The drugmaker's outlook excludes any effects from Trump's 'most favoured nation' drug pricing order from May, a J&J executive said during an investor call. The order directs pharma companies to slash US drug prices to international levels. Excluding foreign currency impact, medical device sales jumped 6.1% to US$8.54bil, outpacing predictions of US$8.25bil. J&J saw gains from new products including Varipulse and Trupulse, which are used for pulsed field ablation, as well as double-digit growth for Abiomed products, specifically its Impella heart pumps. Jonas said he was surprised by the stock increase, given that strong medical device volumes had been mostly anticipated, with both insurers and hospitals indicating robust surgical activity during the quarter. J&J is betting on cardiovascular and surgery – especially with its move into robotics – as the key engines of growth for its medtech unit, an executive said during the investor call. Darzalex, a blood cancer therapy launched in 2015, brought in 2Q25 sales of US$3.54bil, compared with analysts' expectations of US$3.38bil. — Reuters
Yahoo
6 days ago
- Business
- Yahoo
J&J doesn't have to 'do a deal out of desperation' despite facing patent cliffs: CFO
Johnson & Johnson (JNJ) reported stronger-than-expected second quarter earnings Wednesday, beating Wall Street expectations on both the top and bottom lines. The company reported $23.7 billion in revenues, beating estimates of $22.8 billion, and adjusted earnings per share of $2.77, compared to estimates of $2.70. The beat also came with raised guidance for the year, up 5.4% at the midpoint, or about $2 billion, giving the stock a boost Wednesday. The stock was up less than 2% in early trading on Wednesday. Read more about Johnson & Johnson's stock moves and today's market action. The good news comes amid several overhangs on the company, including medical device tariffs and ongoing talc litigation. CFO Joe Wolk told Yahoo Finance the company is well-suited to handle the pressure, as well as the loss of exclusivity with psoriasis drug Stelara, which was a $10 billion-plus drug annually in recent years. The expected gap in revenue from the generic competition for Stelara and other drugs J&J will face in the coming years is not going to have a noticeable impact on the company, he said. "We don't have to do a deal out of desperation to fill a revenue gap," Wolk said. "Stelara eroded $1.2 billion from the second quarter of 2024, compared to the second quarter of 2025. The rest of the portfolio grew 15%. Most companies would either be pausing growth or contracting, here we are growing." He also noted that the company revised the impact of tariffs to $200 million versus $400 million previously. But uncertainty about drug tariffs still lingers. "We're still waiting to see what the administration shares in that regard," Wolk said. "But, to their credit, the administration has really engaged with business ... to just understand the dynamics, the complexity of our business. We can't pick up a supply chain and move it overnight. We can't construct new facilities overnight." JPMorgan analyst Chris Schott noted the $230 million beat in MedTech was a significant positive, along with the earnings beat. The medical device segment has been hammered by Trump tariffs and a recent antitrust lawsuit Johnson & Johnson lost in May, which resulted in a $147 million payout. "We expect these results will be well received/should translate favorably as we think about the rest of the biopharma group," Schott wrote in a note to clients Wednesday. "And finally on MedTech, the quarter's beat is a step in the right direction for the segment following recent controversies." CEO Joaquin Duato said in a statement the company is looking to make up first-half softness in the second half of the year. "Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery, and cardiovascular, which will extend and improve lives in transformative ways," he said. J&J, like other big pharma peers, faces patent expiry of some of its biggest drugs in the coming years. How it will fill that gap once it loses its drugs' market share to generic competition remains to be seen. J&J faced its first generic competition this year with Stelara, and the company attributed that to some of the loss in the second quarter. "Growth was partially offset by an approximate (1,170) basis points impact from Stelara in Immunology, and an approximate (130) basis points impact from COVID-19 in Infectious Diseases," the earnings statement said. In addition, Stelara had been embroiled in Medicare's drug pricing negotiations as part of the Inflation Reduction Act signed by the prior administration. Jay Woods, Freedom Capital Markets' chief global strategist, recently told Yahoo Finance that the stock has been stuck "in a neutral pattern" for some time. Woods said it's a great long-term play with consistent returns and dividends, but all eyes are on how J&J and others are going to manage their M&A strategy to account for the significant revenue losses attributed to patent expiries. Wolk told Yahoo Finance the company is looking at a strong balance sheet, with $20 billion on hand, plus capital deployment of $55 billion in the last few years for large to small M&A deals. Of the $55 billion, $10 billion was used on 80 small deals, he said. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Johnson & Johnson Lifts Annual Forecast After Strong Cancer Drugs, Medtech Performance
Johnson & Johnson (NYSE:JNJ) on Wednesday reported a second-quarter 2025 adjusted earnings of $2.77 per share, down 1.8% year over year, beating the consensus of $2.68. The pharmaceutical giant reported sales of $23.74 billion, up 5.8% year over year and beating the consensus of $22.85 billion. Operational growth was 4.6%, and adjusted operational growth was 3%. Innovative Medicine sales increased 4.9% or 3.8% operationally to $15.20 was driven by Darzalex (daratumumab), Carvykti (ciltacabtagene autoleucel), Erleada (apalutamide), Rybrevant/Lazcluze in oncology, Tremfya (guselkumab) and Simponi/Simponi Aria in immunology, and Spravato (esketamine) in neuroscience. Growth was partially offset by an approximate (1,170) basis points impact from Stelara (ustekinumab) in immunology, and an approximate (130) basis points impact from COVID-19 in infectious diseases. Cancer sales increased to $6.31 billion, up 24% (+22.3% operational). Immunology sales fell to $3.99 billion, down 15.4% (down 16% operational). Stelara sales fell 42.7% to $1.65 billion. Darzalex sales rose 23% to $3.54 billion. The company's cancer cell therapy, Carvykti, generated sales of $439 million. View more earnings on JNJ MedTech sales increased 7.3% to 8.54 billion. Growth was primarily driven by electrophysiology products and Abiomed in cardiovascular and wound closure products in General Surgery. A slow ramp-up to tariffs would actually be good news, Johnson & Johnson CFO Joe Wolk said in an interview with Bloomberg. The delay shows 'there's an understanding you can't put up a biopharmaceutical manufacturing facility overnight,' Wolk told Bloomberg. 'As long as those conversations continue to occur, I think we're in a pretty good position.' The report added that the company reduced its expected tariff costs for this year by half to $200 million. Johnson & Johnson revised its fiscal year 2025 guidance. The company expects adjusted earnings of $10.80-$10.90, up from prior guidance of $10.50-$10.70, compared to the consensus of $10.62. Johnson & Johnson raised sales guidance from $91 billion-$91.8 billion to $93.2 billion-$93.6 billion versus $91.4 billion. For Innovative Medicine, the company expects the negative impact of Part D redesign, as a percentage of sales, to be consistently applied throughout the year. Johnson & Johnson expects normalized procedure volume and seasonality for the MedTech segment. Price Action: JNJ stock is trading higher by 1.28% to $157.15 during the premarket session at last check Wednesday. Read Next:Photo by Tada Images via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? JOHNSON & JOHNSON (JNJ): Free Stock Analysis Report This article Johnson & Johnson Lifts Annual Forecast After Strong Cancer Drugs, Medtech Performance originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in 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
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
