By Johnson & Johnson’s stock saw an increase as the pharmaceutical and medical-device company revealed its long-term financial outlook. The company expects operational sales growth between 5% and 6% in 2024, excluding revenue from the Covid-19 vaccine. Analysts had predicted sales growth of 3.3%, according to FactSet.
Furthermore, Johnson & Johnson anticipates adjusted operational earnings in the range of $10.55 to $10.75, which includes a 15 cent impact from the acquisition of Laminar. Laminar is a medical-device company focused on assisting patients with non-valvular atrial fibrillation. Analysts had estimated adjusted earnings of $10.87 per share.
In addition to these projections, Johnson & Johnson presented its long-term forecasts for its Enterprise, MedTech, and Innovative Medicine divisions, highlighting the “key drivers for sustained competitive growth and value creation.”
The company’s release stated that with strong free cash flow generation and a healthy balance sheet, Johnson & Johnson will continue to focus on its capital allocation strategy. This strategy includes ongoing investments in research and development, annual increases in dividends, strategic business development initiatives for inorganic growth, and assessing share repurchases when suitable.
In premarket trading, the stock rose by 0.3% to $159.33.
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