J&J revises 2023 sales, profit outlook lower after Kenvue separation, will maintain dividend

Johnson & Johnson
JNJ,
-0.35%
updated on Wednesday its 2023 financial guidance in the wake of the Kenvue Inc.
KVUE,
+0.92%
separation that was completed last week. The drug maker now expects full-year reported sales of $83.2 billion to $84.0 billion, down from previous guidance of $98.8 billion to $99.8 billion. Adjusted earnings per share is now expected to be $10.00 to $10.10, down from a previous estimate of $10.70 to $10.80. The company said it took in $13.2 billion in cash from Kenvue’s initial public offering and debt offering, and maintains a 9.5% stake in Kenvue’s common stock. J&J said it will maintain its quarterly dividend of $1.19 a share, which at Tuesday’s stock closing price of $164.31 implies a dividend yield of 2.90%, compared with the implied yield for the S&P 500
SPX,
+0.38%
of 1.53%. J&J’s stock, which slipped 0.2% in premarket trading, has gained 6.4% over the past three months through Tuesday, while the Dow Jones Industrial Average
DJIA,
+0.11%
has tacked on 5.5%.