Johnson & Johnson Sets Guidance for 2024 and Beyond

Overview

Johnson & Johnson's stock (JNJ) showed slight gains in premarket trading on Tuesday, as the healthcare company released its guidance for 2024 and the longer term. With an investor day scheduled at the New York Stock Exchange, Johnson & Johnson expects solid sales growth and adjusted EPS figures. Despite facing competition in certain areas, the company remains optimistic about its future prospects.

2024 Sales Growth and Adjusted EPS

Johnson & Johnson projects a sales growth rate of 5% to 6% for the year 2024. Additionally, they anticipate adjusted EPS to fall within the range of $10.55 to $10.75. However, it's important to note that the recently announced acquisition of medical tech company Laminar Inc. will have a minimal impact on earnings, reducing it by 15 cents. The FactSet consensus suggests an EPS of $10.78.

Continued Growth of Enterprise Division

Despite potential competition in the U.S. market from a biosimilar for Stelara, a treatment for plaque psoriasis and psoriatic arthritis, Johnson & Johnson's enterprise division is expected to experience at least 3% operational sales growth in 2025. Looking ahead, the company foresees a compound annual growth rate (CAGR) of 5% to 7% from 2025 to 2030.

Strong Outlook for Medtech Segment

For the medtech segment, Johnson & Johnson anticipates operational sales to outperform its markets, which are projected to grow by 5% to 7% through 2027. This reflects their confidence in the segment's potential.

Growth in Innovative Medicine

Johnson & Johnson also foresees a 5% to 7% operational sales growth for innovative medicine from 2025 to 2030. This underscores their commitment to advancing and expanding the boundaries of medical innovation.

Stock Performance

Although Johnson & Johnson's stock has experienced a 10% decline year to date, it is important to note that the S&P 500 has gained 19% during the same period.

In conclusion, Johnson & Johnson's guidance for 2024 and beyond showcases their confidence in future growth opportunities. The company remains focused on delivering innovative solutions while navigating competitive challenges in the healthcare industry.