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JNJ NYSE· Johnson & Johnson
Earnings report Q4 2023

Johnson & Johnson Reports Strong Revenue Growth

Segments of Revenue

Johnson & Johnson's total sales to customers reached $85.16 billion, a significant increase from the previous year's $79.99 billion and $78.74 billion respectively. The company operates in two main business segments: Innovative Medicine and MedTech. However, the report does not provide a detailed breakdown of revenues for these segments.

Strengths

The company's strong revenue growth can be attributed to its broad range of products in the healthcare field, with a primary focus on products related to human health and well-being. The company's diversified portfolio and global presence have allowed it to maintain steady revenue growth.

Challenges

Despite the strong revenue growth, Johnson & Johnson faced increased costs of products sold, which rose to $26.55 billion from the previous year's $24.60 billion. Selling, marketing, and administrative expenses also increased to $21.51 billion. Additionally, research and development expenses rose to $15.09 billion, indicating a significant investment in future growth but also a potential strain on current profits.

Noteworthy

The fiscal first quarter of 2023 included a $6.9 billion charge related to talc matters. The fiscal third quarter of 2023 included a non-cash gain on the exchange offer of $21.0 billion that was recorded in net earnings from discontinued operations. The fourth quarter of 2023 included favorable changes in the fair value of securities of $0.4 billion.

Summary

Johnson & Johnson demonstrated strong revenue growth in the latest quarter, reaching $85.16 billion. This growth can be attributed to the company's diversified product portfolio and global presence. However, increased costs of products sold and higher selling, marketing, and administrative expenses present challenges. Noteworthy items such as the charge related to talc matters and the non-cash gain on the exchange offer also impacted the company's financial performance.

Source documents

Form 10-K  filed on Feb 16, 2024
129 pages scanned

Reference data

Company financials Q4 revenue 21.38B
Analyst estimates Q4 EPS beat by 18.79%
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