Johnson & Johnson on Tuesday reported first-quarter adjusted earnings that topped Wall Street’s expectations as sales in its medical devices business surged.

Meanwhile, the company’s total revenue for the period was largely in line with estimates.

J&J’s medtech division provides devices for surgeries, orthopedics and vision. The company is benefiting from a rebound in demand for nonurgent surgeries among older adults, who deferred those procedures during the Covid pandemic. That increased demand has been observed by health insurers like Humana, UnitedHealth Group and Elevance Health.

Here’s what J&J reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $2.71 adjusted vs. $2.64 expected
• Revenue: $21.38 billion vs. $21.4 billion expected

J&J’s financial results are considered a bellwether for the broader health sector.

The company reported $21.38 billion in total sales for the first three months of 2024, up more than 2% from the same quarter in 2023. 

The pharmaceutical giant booked net income of $5.35 billion, or $2.20 per share during the quarter. That compares with a net loss of $491 million, or 19 cents per share, for the year-earlier period. At the time, J&J recorded costs tied to its talc baby powder liabilities and the spinoff of its consumer health unit Kenvue. 

Excluding certain items for the first quarter of 2024, adjusted earnings per share were $2.71.

J&J also narrowed its full-year guidance for the year. The company now expects sales of $88 billion to $88.4 billion. That compares to a previous forecast of $87.8 billion to $88.6 billion. 

J&J expects adjusted earnings of $10.57 to $10.72 per share. That compares to a previous guidance of $10.55 to $10.75 per share.

The results come weeks after J&J’s whopping $13.1 billion acquisition of heart device firm Shockwave Medical — part of its push into the cardiovascular space. Both companies have said the deal will make J&J a leader in four quickly growing cardiovascular technology categories. 

J&J has scooped up two other heart device companies over the last two years, spending $16.6 billion to buy Abiomed and $400 million to acquire private company Laminar. 

Those deals also aim to strengthen J&J’s medical devices business following the company’s separation from its consumer health unit Kenvue last year.

J&J’s first-quarter results come amid investor anxiety over the tens of thousands of lawsuits claiming that the company’s talc-based products were contaminated with the carcinogen asbestos and caused ovarian cancer and several deaths.

Those products, which include J&J’s namesake baby powder, now fall under Kenvue. But J&J will assume all talc-related liabilities that arise in the U.S. and Canada.

In January, J&J said it has reached a tentative settlement to resolve an investigation by more than 40 states into claims the company misled patients about the safety of its talc-based products. The company will pay $700 million to settle the probe, its CFO Joseph Wolk told The Wall Street Journal at the time.

Last year, J&J set aside about $400 million to resolve U.S. state consumer protection claims.

Notably, the settlement does not resolve the lawsuits, some of which are slated to go to trial this year. 

J&J will hold an earnings call with investors at 8:30 a.m. ET on Tuesday.