Johnson & Johnson (JNJ) has recently provided an update on its 2023 financial guidance following the completion of the separation with Kenvue Inc. (KVUE) last week. The drug maker now anticipates reported sales for the full year to be in the range of $83.2 billion to $84.0 billion, as compared to the previous guidance of $98.8 billion to $99.8 billion.
Furthermore, Johnson & Johnson expects adjusted earnings per share for 2023 to be in the range of $10.00 to $10.10, a decrease from the earlier estimate of $10.70 to $10.80. Despite these adjustments, the company remains steadfast in its commitment to delivering value to its shareholders.
In relation to the separation, Johnson & Johnson has received $13.2 billion in cash through Kenvue’s initial public offering and debt offering. Additionally, the company still holds a 9.5% stake in Kenvue’s common stock, further demonstrating its continued involvement.
Notably, amidst these changes, Johnson & Johnson will maintain its quarterly dividend of $1.19 per share. At Tuesday’s closing stock price of $164.31, this translates to a dividend yield of 2.90%, significantly higher than the implied yield of 1.53% for the S&P 500.
Over the past three months, Johnson & Johnson’s stock has exhibited a positive performance, with a gain of 6.4%. In comparison, the Dow Jones Industrial Average has experienced an increase of 5.5% during the same period.
Overall, Johnson & Johnson is proactively adapting its financial guidance to align with current market dynamics and aims to continuously enhance shareholder value through its strategic decisions and robust performance.
