Johnson & Johnson (J&J), a global leader in healthcare, recently announced important events and strategic moves that affect its market position and long-term prospects.
Fourth Quarter 2024 Financial Results
Johnson & Johnson released financial results for Q4 2024 that exceeded market expectations. Total annual revenue reached $22.5 billion, driven by a 19% increase in oncology drug sales. This segment has become a key growth driver for the company.
Despite these positive results, the company’s stock fell by 2% due to concerns about the negative impact of the strong dollar on future earnings.
Strategic acquisitions in biopharmaceuticals
Johnson & Johnson continues its strategy of expanding its biopharmaceutical portfolio. Significant steps were:
– Acquisition of Intra-Cellular Therapies: completed for $14.6 billion.
– Acquisition of Shockwave Medical: Completed for $13.1 billion.
These transactions reflect an overall industry shift towards biopharma, similar to GSK, Pfizer and Sanofi, which also spun off consumer healthcare divisions.
Financial forecasts for 2025
The company provided a conservative revenue estimate for fiscal year 2025. Revenue is expected to reach $89.2-$90 billion, below analysts’ expectations ($91.04 billion). Adjusted earnings per share are projected at USD 10.50-10.70, in line with market expectations.
Share price development
As of January 23, 2025, Johnson & Johnson shares are trading at $146.84, up $1.57 (0.01081%) from the previous day. The intraday high was $147.00 while the low was $144.66.
Outlook and conclusion
Johnson & Johnson continues to strengthen its position in the biopharmaceutical sector. The growth is mainly aided by its focus on innovations in oncology treatments and strategic acquisitions. Despite conservative financial estimates for 2025, the long-term outlook remains positive, driven by a focus on key markets and portfolio diversification.
Johnson & Johnson (NYSE-JNJ) also regularly pays quarterly dividends to its shareholders. The current dividend yield is 3.41% p.a. The annual dividend was approved by the AGM at $4.96 per share. The Company also has a current dividend usage date, known as the Ex-Dividend Date , which will be February 18, 2025 and a dividend payment date, known as the Pay Date , which will be March 4, 2025. Based on the fact that Johnson & Johnson (NYSE-JNJ) reported fourth quarter 2024 earnings results with an increase in revenue and released the dividend pay date, the stock price can be expected to rise in the short to medium term investment horizon, according to analysts at Zacks.com, where the average target price for the stock has been set at $172.95 per share.
