10:18 AM EDT, 10/15/2024 (MT Newswires) -- Johnson & Johnson ( JNJ ) reported better-than-expected third-quarter results on Tuesday but lowered its full-year earnings outlook amid costs associated with its recent acquisition of heart technology company V-Wave.

The healthcare products conglomerate now expects adjusted earnings between $9.88 to $9.98 per share for 2024, down from its prior guidance of $9.97 to $10.07. Revenue is pegged at $88.4 billion to $88.8 billion, compared with previous projections of $88 billion to $88.4 billion. The current consensus on Capital IQ is for normalized EPS of $9.83 and revenue of $88.46 billion.

The revised guidance reflects the impact of the pharmaceutical giant's purchase of V-Wave in an up to $1.7 billion deal completed last week. The stock was down 1.8% in Tuesday trade.

"With the addition of the V-Wave transaction, we now anticipate our 2024 adjusted pretax operating margin to decline by approximately 200 basis points," Chief Financial Officer Joseph Wolk said during an earnings call, according to a Capital IQ transcript. "As we strive to advance and accelerate our pipeline, you can anticipate elevated levels of investment in the fourth quarter."

For the third quarter, adjusted EPS dropped 9% year over year to $2.42, but topped the Street's view for $2.21. The result was impacted by an acquired in-process research and development expense of $1.25 billion, the company's head of investor relations, Jessica Moore, said on the call. Sales rose to $22.47 billion from $21.35 billion last year, ahead of analysts' $22.17 billion estimate.

Medtech revenue advanced 5.8% year over year to $7.89 billion. The segment's operational sales inclined 6.4%, boosted mainly by electrophysiology products, wound closure products in general surgery, contact lenses in vision and Abiomed, a cardiovascular medical technology provider acquired in 2022.

Innovative medicine sales grew 4.9% to $14.58 billion. Operational revenue improved 6.3%, driven by products including blood cancer therapy Darzalex and prostate cancer medication Erleada.

Revenue in the US increased to $12.91 billion from nearly $12 billion last year, while international sales moved up 2.2% to $9.56 billion.

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