Johnson & Johnson Beats Out Q1 Earnings Report Expectation — Company Increases Annual Forecast

By Thomas Price Tuesday, April 20, 2021

Considering the immense impact that companies within the pharmaceutical and consumer brand industries have right now, there are very few names more impactful in 2021 than consumer health company Johnson & Johnson. Following the development and eventual large-scale rollout of the COVID-19 vaccine created by the company, Johnson & Johnson recently released its Q1 earnings report. The company beat out analyst expectations through solid business growth across industry. Despite the stronger than projected earnings, stock prices for the business remain relatively flat in early pre-market trading.

Johnson & Johnson offices in Silicon Valley.

Johnson & Johnson Earnings vs. Expectations

Following a turbulent and lucrative 2020 fiscal year, consumer health company Johnson & Johnson generated $22.321 billion in total revenue during Q1 of the new fiscal year. This represents an increase of nearly $2 billion compared to the same quarter last year, roughly translating to a total growth in revenue of 7.9%. The company also beat out analyst projections which had estimated that the business would only earn $21.98 billion.

Johnson & Johnson not only found ways to generate more revenue, but did so while increasing total company earnings as well. In fact, the business reported adjusted earnings of $2.59 per share. Once again, Johnson & Johnson grew in comparison to the same quarter the year before, where the company only took in earnings of $2.30 per share. This figure also beat out Wall Street expectations which had only pegged the company to report adjusted earnings of $2.34 per share.

The largest area of growth for the company came from its pharmaceutical business, which took in over $1 billion more in revenue this quarter than Q1 in the 2020 fiscal year. A large reason for this is due to the approval and worldwide rollout of the Johnson & Johnson COVID-19 vaccine, with millions of doses being delivered monthly.

The medical devices portion of the business also grew by 10.9%, backed by the increased focus on healthcare and hospital resources amidst the pandemic. However, consumer health products declined, with the company attributing this to the stockpiling of over-the-counter medication last year in homes all over the world.

Future Outlook and Stock Market Reaction

Due to the strength of this most recent quarterly report, Johnson & Johnson upgraded its overall annual guidance for the year. The company now projects growth in operational sales between 8.7% and 9.9% as the outlook continues to come up positive for the business. Johnson & Johnson has been nearly completely flat in early pre-market trading, down less than 1%, with the company share prices still sitting close to near all-time highs.

In a statement released alongside the Q1 earnings report, chairman and CEO of the company Alex Gorsky said, “Johnson & Johnson delivered a strong first quarter performance led by the above market growth of our Pharmaceutical business and continued recovery in Medical Devices. The ability to deliver these results while simultaneously advancing our robust pipeline of life-enhancing medicines, products and solutions during these times is a testament to the strength and resilience of our business and the dedication of the 135,000 employees of Johnson & Johnson who strive every day to profoundly change the trajectory of health for humanity and make healthier communities for everyone, everywhere.”

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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