JNJ | Q4 2024

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Overview

• Non-GAAP EPS of $2.04 beats by $0.02.

• Revenue of $22.5B (+5.1% Y/Y) beats by $50M.

Takeaways

Johnson & Johnson (JNJ) had a solid finish to 2024, with strong results and big moves to keep the company growing.

In Q4, worldwide sales came in at $22.5 billion, up 6.7% from the same period last year, including a strong 10% jump in U.S. sales. With that said, global sales took a bit of a hit from the loss of exclusivity for STELARA, one of JNJ’s top-performing drugs.

Adjusted net earnings for the quarter were $4.9 billion, with earnings per share (EPS) of $2.04 — both slightly down compared to last year.

For the full year, JNJ brought in $88.8 billion in sales, up almost 6% year-over-year, driven by strong growth in the U.S. Adjusted EPS for 2024 nudged up to $9.98, showing steady improvement.

The company’s free cash flow hit $20 billion for the year, proving it can keep generating solid cash even while navigating higher legal and tax expenses.

Getting into the business segments, Innovative Medicine had a standout quarter, pulling in $14.3 billion in sales, with several key drugs seeing double-digit growth.

DARZALEX, a treatment for multiple myeloma, hit a major milestone, becoming JNJ’s first drug to top $3 billion in sales in a single quarter.

SPRAVATO, a depression treatment, crossed $1 billion in annual sales for the first time, and CARVYKTI, another cancer treatment, more than doubled its sales.

MedTech also delivered strong results, with sales topping $30 billion for the second year in a row. The segment’s success was powered by solid growth in cardiovascular devices and the launch of 15 new products throughout the year.

Acquisitions played a big role in JNJ’s growth strategy in 2024. The company added Shockwave, V-Wave, and Ambrx Proteologix to its portfolio, strengthening both its MedTech and Innovative Medicine businesses.

JNJ also announced plans to acquire Intra-Cellular Therapies, which highlights its growing focus on neurological disorders.

Looking ahead, JNJ expects sales to grow about 3% in 2025, even as it deals with challenges like STELARA biosimilar competition and ongoing pressure in China.

EPS is expected to grow nearly 9%, helped by new product launches in cancer and MedTech, along with continued strength from top drugs like DARZALEX and TREMFYA.

Finally, JNJ hit a big milestone this year, increasing its dividend for the 62nd year in a row — something I certainly welcome as I continue adding to my position.

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