Johnson & Johnson Set to Release Fourth Quarter Results

Johnson & Johnson is preparing to announce its fourth-quarter results on Tuesday, prior to the market opening. Here are the key details to keep in mind.

Net Income

According to FactSet, it is expected that the healthcare company will report a net income of $4.37 billion for this quarter, compared to $3.52 billion the previous year.

Revenue

FactSet predicts that Johnson & Johnson, based in New Brunswick, N.J., will reveal $21.02 billion in revenue for the quarter. In the same period last year, the company reported revenue of $23.71 billion.

Adjusted Earnings

Excluding one-time items, analysts estimate that earnings will be around $2.28 per share for this quarter.

Stock Price

During the quarter, the stock price experienced a slight increase of approximately 0.6% and is currently trading at $162.11.

What to Anticipate

Discussion on Company Outlook

During the earnings call, Johnson & Johnson's outlook for 2023 and beyond is expected to be a major topic of discussion. In October, the company raised its sales and adjusted earnings per share outlook for 2023. Additionally, Johnson & Johnson stated in December that it anticipates a compound annual sales growth of 5% to 7% over the next five years through 2030. This forecast includes a minimum operational sales growth of 3% in 2025, despite the introduction of a Stelara biosimilar in the U.S.

Acquisitions Update

Investors can look forward to receiving further details on one of Johnson & Johnson's recent acquisitions. The company announced earlier this month that it will acquire cancer treatment developer, Ambrx Biopharma, in a $2 billion cash deal. This opportunity is said to enable Johnson & Johnson to "design, develop, and commercialize targeted oncology therapeutics."

Succession Rate

While not a widely discussed topic, investors may be curious about the succession rate at Johnson & Johnson. The Wall Street Journal reported in December that Jennifer Taubert, head of the pharmaceuticals business, and CFO Joseph Wolk are leading contenders for the top position, following the unexpected departure of Ashley McEvoy, head of the medical device division. It is noted that Joaquin Duato, the current CEO, has been in his role for about two years and is expected to remain for several more years. However, it is unlikely that he will hold the position as long as his two predecessors, who had approximately 10-year tenures.