J&J sales in US rise 10%, health care giant raises dividend

By AP News

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Johnson & Johnson beat first-quarter expectations, as growth in the health care giant’s home market helped counter another revenue hit overseas from a strong dollar

Earns Johnson & Johnson

Johnson & Johnson beat first-quarter expectations, as growth in the health care giant's home market helped counter another revenue hit overseas from a strong dollar.

The health care giant booked a $68 million loss on a one-time charge in the quarter, and revenue grew more than 5% to $24.75 billion, which was better than anticipated.

Adjusted earnings totaled $2.68 per share, topping Wall Street projections for per-share earnings of $2.50, according to a survey by FactSet.

Johnson & Johnson sells prescription drugs and medical devices. It is splitting off its consumer health business, which includes well-known products like BandAids. The company expects to complete the separation this year.

Sales in the U.S. grew nearly 10% to $12.52 billion in the quarter, while international sales climbed nearly 2%.

A strong U.S. dollar can affect sales for companies that do a lot of international business. They have to convert those sales into dollars when they report earnings. The stronger dollar decreases the value of those sales. It also gives foreign products a price edge in the United States.

J&J brings in nearly half of its revenue from outside the United States.

J&J board OK'd a 5% increase in the company's quarterly dividend. That bumps the amount up to $1.19 per share from $1.13 per share.

The New Brunswick, New Jersey, company on Tuesday also boosted the lower end of its forecasted range for 2023 by a dime. It now expects adjusted earnings of between $10.50 and $10.60 per share.

Analysts expect earnings of $10.51 per share this year.

Shares climbed in early morning trading.

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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