Johnson & Johnson (JNJ) Bundle
A Brief History of Johnson & Johnson
Company Overview
Johnson & Johnson (J&J), founded in 1886, is a multinational corporation that develops medical devices, pharmaceuticals, and consumer packaged goods. As of 2024, J&J is recognized as one of the largest and most comprehensive healthcare companies globally.
Recent Financial Performance
For the fiscal third quarter ended September 29, 2024, Johnson & Johnson reported total sales of $22.471 billion, reflecting a 5.2% increase compared to $21.351 billion for the same period in 2023. The gross profit for the same quarter was $15.508 billion, yielding a gross margin of 69.0%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $22.471 billion | $21.351 billion | 5.2% |
| Gross Profit | $15.508 billion | $14.745 billion | 5.2% |
| Net Earnings | $2.694 billion | $26.028 billion | -89.6% |
| Net Earnings per Share (Diluted) | $1.11 | $10.21 | -89.1% |
Segment Performance
Sales across J&J's segments for the fiscal third quarter of 2024 are as follows:
| Segment | Sales (Q3 2024) | Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Innovative Medicine | $13.7 billion | $12.9 billion | 6.2% |
| MedTech | $8.1 billion | $7.6 billion | 6.6% |
| Consumer Health | $3.7 billion | $3.9 billion | -5.1% |
Debt and Capital Structure
As of September 29, 2024, Johnson & Johnson reported total debt of $35.8 billion, an increase from $29.9 billion in the same quarter of the previous year. The company issued senior unsecured notes totaling $6.7 billion in the fiscal second quarter of 2024, which were used for acquisitions and general corporate purposes.
Recent Acquisitions
In 2024, J&J completed several significant acquisitions, including:
- Shockwave Medical: Acquired for $3.4 billion, focusing on innovative cardiovascular treatments.
- Ambrx Biopharma: Acquired for approximately $2.0 billion to enhance its biopharmaceutical capabilities.
- Yellow Jersey Therapeutics AG: Acquired for $1.25 billion to secure rights to NM26, a bispecific antibody targeting atopic dermatitis.
Legal and Regulatory Challenges
Johnson & Johnson continues to face legal challenges, particularly related to talc claims. As of September 29, 2024, the company has recorded a reserve of approximately $12.0 billion associated with talc litigation.
Market Position
As of 2024, Johnson & Johnson maintains a strong market presence, with significant sales in the United States, contributing $12.909 billion in Q3 2024, up 7.6% from the previous year.
Conclusion
Johnson & Johnson's history reflects a consistent evolution through innovation, strategic acquisitions, and a robust response to market challenges. The company's financial performance in 2024 illustrates its resilience and commitment to maintaining its leadership position in the healthcare industry.
A Who Owns Johnson & Johnson (JNJ)
Major Shareholders
As of 2024, Johnson & Johnson (JNJ) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
- The Vanguard Group, Inc. - 8.37% ownership
- BlackRock, Inc. - 8.04% ownership
- State Street Corporation - 4.51% ownership
- Wellington Management Group LLP - 4.06% ownership
- Fidelity Investments - 3.58% ownership
Shareholder Composition
The following table illustrates the shareholder composition of Johnson & Johnson as of the end of the third quarter of 2024:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 74.56% |
| Individual Investors | 15.67% |
| Mutual Funds | 9.77% |
Stock Performance and Market Capitalization
As of September 29, 2024, Johnson & Johnson's market capitalization was approximately $366 billion. The stock price has shown a 5.2% increase year-to-date, reflecting the company's strong financial performance and resilience in the healthcare market.
Financial Highlights
For the fiscal third quarter ended September 29, 2024, Johnson & Johnson reported:
- Net Earnings: $2.694 billion
- Net Earnings per Share: $1.12 (diluted)
- Total Revenue: $22.471 billion
- Cash Dividends Paid: $2.985 billion
Recent Corporate Actions
In 2024, Johnson & Johnson has been active in acquisitions, including:
- Acquisition of V-Wave Ltd for $0.6 billion
- Acquisition of Yellow Jersey Therapeutics for approximately $1.25 billion
- Acquisition of Proteologix, Inc. for approximately $0.8 billion
Debt and Financial Obligations
As of September 29, 2024, Johnson & Johnson's total debt was approximately $35.8 billion, with a weighted average interest rate of 3.35%. The company also had cash, cash equivalents, and marketable securities totaling $20.3 billion.
Ownership Trends
The trend in ownership indicates a rising concentration among institutional investors, with significant stakes held by the top five shareholders. This trend reflects confidence in Johnson & Johnson's long-term growth prospects and stability in the healthcare sector.
Johnson & Johnson (JNJ) Mission Statement
As of 2024, Johnson & Johnson's mission statement remains centered around the principle of caring for the world, one person at a time. The company is committed to improving global health through innovative solutions across its diverse business segments: Innovative Medicine, MedTech, and Consumer Health. Johnson & Johnson aims to provide high-quality products that address the needs of patients, consumers, and healthcare professionals.
Financial Overview
In the fiscal nine months ended September 29, 2024, Johnson & Johnson reported:
- Total sales: $66.3 billion
- Net earnings: $10.6 billion
- Earnings per share (EPS): $4.42
- Cash dividends paid: $8.8 billion
Segment Performance
The company's performance is segmented into two major divisions:
| Segment | Sales (in billions) | Net Earnings (in millions) | EPS (in dollars) |
|---|---|---|---|
| Innovative Medicine | $42.6 | $14.9 | $4.42 |
| MedTech | $23.7 | $3.7 | $1.12 |
Global Reach and Market Strategy
Johnson & Johnson operates globally, with significant revenue generated from various regions:
| Region | Sales (in millions) | Percent Change |
|---|---|---|
| United States | $37,098 | 7.7% |
| Europe | $15,291 | -1.0% |
| Western Hemisphere (excluding U.S.) | $3,579 | 5.8% |
| Asia-Pacific, Africa | $10,333 | -1.6% |
Research and Development Investment
Johnson & Johnson continues to invest significantly in research and development to drive innovation:
- R&D expense for the fiscal nine months of 2024: $11.9 billion
- Focus areas include immunology, oncology, and infectious diseases.
Recent Developments
The company has undertaken several strategic moves in 2024:
- Acquisition of Shockwave Medical with an investment of approximately $15.1 billion.
- Continued focus on litigation related to talc matters, with charges of $5.1 billion in the fiscal nine months of 2024.
Shareholder Returns
Johnson & Johnson remains committed to returning value to shareholders through dividends and stock repurchases:
- Cash dividends paid per share: $3.67
- Common stock repurchase: $2.15 billion in 2024.
Debt and Liquidity Position
As of September 29, 2024, the company's financial position included:
- Total debt: $35.8 billion
- Cash and cash equivalents: $20.3 billion
- Net cash flow from operating activities: $17.3 billion
Johnson & Johnson's mission statement, financial health, and strategic direction illustrate its commitment to improving health outcomes while ensuring robust shareholder value.
How Johnson & Johnson (JNJ) Works
Company Overview
Johnson & Johnson operates under two primary segments: Innovative Medicine and MedTech. As of 2024, the company has undergone significant restructuring, particularly following the spin-off of its Consumer Health segment.
Financial Performance
For the fiscal nine months ended September 29, 2024, Johnson & Johnson reported:
- Total Sales: $66.3 billion
- Net Earnings: $10.6 billion
- Net Earnings per Share (Diluted): $4.38
- Gross Profit: $46.0 billion
- Research and Development Expense: $11.9 billion
Sales by Segment
| Segment | Sales (in millions) | Percent Change |
|---|---|---|
| Innovative Medicine | $42,632 | 3.9% |
| MedTech | $23,669 | 4.0% |
Innovative Medicine Segment
The Innovative Medicine segment generated sales of $42.6 billion for the fiscal nine months of 2024, reflecting a 3.9% increase year-over-year.
Major Therapeutic Area Sales
| Therapeutic Area | Sales (in millions) | Total Change | Operational Change | Currency Change |
|---|---|---|---|---|
| Immunology | $13,590 | 1.0% | 2.6% | (1.6%) |
| Oncology | $15,284 | 17.2% | 19.3% | (2.1%) |
| Infectious Diseases | $2,622 | (26.5%) | (26.1%) | (0.4%) |
| COVID-19 Vaccine | $198 | (81.6%) | (81.6%) | 0.0% |
MedTech Segment
The MedTech segment reported sales of $23.7 billion for the fiscal nine months of 2024, with a growth of 4.0% from the previous year. Key products contributing to sales include surgical instruments and cardiovascular devices.
Sales by Region
| Region | Sales (in millions) | Percent Change |
|---|---|---|
| United States | $37,098 | 7.7% |
| Europe | $15,291 | (1.0%) |
| Western Hemisphere (excl. U.S.) | $3,579 | 5.8% |
| Asia-Pacific, Africa | $10,333 | (1.6%) |
Cash Flow and Investments
For the fiscal nine months ended September 29, 2024, Johnson & Johnson reported:
- Net Cash Flows from Operating Activities: $17.3 billion
- Cash Dividends Paid: $8.8 billion
- Repurchase of Common Stock: $2.2 billion
Balance Sheet Highlights
As of September 29, 2024, Johnson & Johnson's balance sheet included:
- Total Assets: $175.2 billion
- Total Liabilities: $104.6 billion
- Total Shareholders' Equity: $70.6 billion
Litigation and Other Expenses
In the fiscal nine months of 2024, Johnson & Johnson incurred significant litigation-related expenses totaling approximately $5.5 billion, primarily associated with ongoing legal matters including talc-related litigation.
Recent Acquisitions
Johnson & Johnson has been active in acquiring innovative companies to bolster its product pipeline:
- Shockwave Medical: Acquired for approximately $3.4 billion.
- Momenta Pharmaceuticals: Enhanced its immunology portfolio.
Outlook
Johnson & Johnson's strategic focus is on expanding its presence in the Innovative Medicine and MedTech sectors while managing costs and addressing ongoing litigation challenges.
How Johnson & Johnson (JNJ) Makes Money
Revenue Segments
Johnson & Johnson operates through two primary business segments: Innovative Medicine and MedTech. For the fiscal nine months ended September 29, 2024, the total sales were $66,301 million, a 4.0% increase from $63,764 million in the previous year.
| Segment | Sales (in Millions) | Percent Change |
|---|---|---|
| Innovative Medicine | $42,632 | 3.9% |
| MedTech | $23,669 | 4.1% |
Innovative Medicine Performance
The Innovative Medicine segment includes several therapeutic areas. In Q3 2024, sales were $14,580 million, with a notable contribution from key products:
| Product | Sales (Q3 2024, in Millions) | Year-Over-Year Change |
|---|---|---|
| DARZALEX | $3,016 | 20.7% |
| ERLEADA | $790 | 25.4% |
| IMBRUVICA | $753 | (6.8%) |
| STELARA | $2,676 | (6.6%) |
| Other Oncology | $649 | 93.4% |
MedTech Performance
In the MedTech segment, sales for the fiscal nine months of 2024 reached $23,669 million. The following table summarizes major franchises:
| Franchise | Sales (in Millions) | Year-Over-Year Change |
|---|---|---|
| Surgery | $7,338 | (2.2%) |
| Orthopaedics | $6,843 | 2.5% |
| Cardiovascular | $5,645 | 20.6% |
| Vision | $3,843 | (0.5%) |
Research and Development Expenses
For the nine months ended September 29, 2024, Johnson & Johnson reported research and development expenses of $11,934 million, which accounted for 18.0% of total sales.
Net Earnings and Profitability
The net earnings from continuing operations for the nine months of 2024 were $10,635 million, translating to a net earnings per share of $4.42. This represents a significant increase compared to $9,194 million, or $3.57 per share, in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Earnings (in Millions) | $10,635 | $9,194 |
| Net Earnings Per Share | $4.42 | $3.57 |
Cost Structure
For the nine months ended September 29, 2024, Johnson & Johnson's cost of products sold was $20,343 million, representing 30.7% of total sales, compared to $19,755 million, or 31.0%, the previous year.
Geographic Sales Distribution
Sales by geographic region show varied performance. For the fiscal nine months ended September 29, 2024:
| Region | Sales (in Millions) | Percent Change |
|---|---|---|
| U.S. | $36,000 | 8.2% |
| International | $30,301 | (1.7%) |
Dividends and Shareholder Returns
In the fiscal nine months of 2024, Johnson & Johnson paid cash dividends totaling $8,839 million, with a dividend per share of $3.67.
Conclusion
Johnson & Johnson's diversified business model and strong performance in both Innovative Medicine and MedTech segments have contributed significantly to its revenue and profitability as of 2024.
Johnson & Johnson (JNJ) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Johnson & Johnson (JNJ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Johnson & Johnson (JNJ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Johnson & Johnson (JNJ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.