Three United States-based companies operating in the global healthcare industry have reported their financial results for the three months ended 31 December
Consumer goods producer Proctor & Gamble posted its half-year revenue and earnings, while Johnson & Johnson and Abbott Laboratories released their results for the full year of 2024.
Proctor & Gamble
Proctor & Gamble (P&G) beat market expectations with its revenue and earnings for the second quarter of the 2025 financial year (FY25).
P&G, which sells Gillette razors and shaving products, Pampers nappies and Head & Shoulders shampoo, said net sales and core earnings per share (EPS) rose 2% to $21.9 billion and $1.88 respectively in the three months to 31 December 2024.
This beat analysts’ estimates of $21.54 billion and 1.86 cents per share.
Diluted net EPS, also $1.88, was 34% higher than the previous corresponding period (pcp), due mainly to a non-cash impairment of the carrying value of the Gillette intangible assets in the pcp.
P&G maintained its FY25 guidance for all-in sales growth of 2%-4%, organic sales growth of 3-5%, diluted net EPS growth of 10%-12% (from $6.02 in FY24), core EPS growth of 5-7% to $6.91-$7.05 per share with a mid-point of $6.98 (+6%).
Chairman, President and Chief Executive Officer Jon Moeller said organic sales growth, core EPS growth and cash return accelerated in the second quarter.
“Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year,” Moeller said in a press release.
The Cincinnati, Ohio-based company remained committed to its integrated growth strategy which enabled solid results and was a “foundation for balanced growth and value creation”.
P&G (NYSE: PG) shares closed on Wednesday up US$3.02 (1.87%) at $164.74, capitalising the company at $387.97 billion.
Johnson & Johnson
Johnson & Johnson (J&J) posted a 17.1% drop in earnings per share (EPS) to US$1.41 and a 10.9% drop in net diluted EPS to $2.04 in the fourth quarter (Q4) of 2024.
This includes 22 cents per share in acquired IPR&D (In-process research and development (IPR&D) charges related to the acquisition of Israeli medication device company, V-Wave.
J&J, whose products including Band-Aid, Neutrogena, and Johnson’s Baby products are sold in more than 60 countries, said sales grew 5.3% to $22.5 billion in Q4.
The New Brunswick, New Jersey-based company surpassed analysts’ estimates of sales of $22.4 billion and net diluted EPS of $2.01 in the final three months of the year.
Over the full-year, reported net diluted EPS from continuing operations increased 11.3% to $5.79, and adjusted EPS edged 0.06% higher to $9.98 cents, on sales that rose 4.3% to $88.8 billion.
Net and adjusted diluted EPS included 67 cents of acquired IPR&D charges on various transactions throughout the year.
The company issued guidance for 2025 with operational sales growth of 2.5% - 3.5% and adjusted operational EPS of $10.75 - $10.95, reflecting 8.7% growth at the midpoint.
Chairman and Chief Executive Officer Joaquin Duato said 2024 was a transformative year marked by strong growth, an accelerating pipeline and industry-leading innovation investments.
“With our strong financial foundation, differentiated portfolio and robust pipeline, we are well positioned to sustain the high pace of growth and innovation that is the hallmark of Johnson & Johnson,” Duato said in a media release.
Johnson & Johnson (NYSE: JNJ) shares finished down $2.88 (1.94%) at $145.27 on Wednesday, valuing the company at $349.76 million.
Abbott Laboratories
Abbott Laboratories said it achieved its highest sales and earnings per share (EPS) growth of the year in the fourth quarter of 2024.
Abbott, which is known for its diagnostic tests, medical devices like glucose monitors, and nutrition products such as Ensure and Pedialyte, said full-year adjusted diluted EPS grew 5.2% to US$4.67 on sales that rose 9.6% to $42.0 billion.
The Abbott Park, Illinois-based company said fourth-quarter sales were $11 billion, which was a 7.2% increase from the pcp on a reported basis, 8.8% on an organic basis, and 10.1% on an organic basis excluding COVID-19 testing-related sales.
Fourth-quarter diluted EPS of $5.27, compared with 91 cents in the pcp, and adjusted diluted EPS of $1.34, which excludes specified items, was 12.6% higher than the pcp, due to strong performance across all four business segments: nutrition, diagnostics, established pharmaceuticals and medical devices.
“The company is harnessing that momentum as 2025 gets underway and is well-positioned to deliver another year of strong growth,” Abbott said in a statement.
Shares in Abbot Laboratories (NYSE: ABT) edged 99 cents (0.85%) higher to end at $117.78, capitalising the company at $204.28 billion.
