Johnson & Johnson, Harley-Davidson Higher on Good 3rd-Quarter Results

Companies beat expectations

Author's Avatar
Oct 17, 2017
Article's Main Image

U.S. stock market traded relatively flat in premarket trading on Tuesday, but the Dow Jones Industrial Average rose after the market opened. The S&P 500 and Nasdaq Composite were lower.

Johnson & Johnson (JNJ, Financial) jumped more than 2% on the back of the company reporting its financial results for the third quarter. The company posted earnings per share of $1.90 and diluted EPS of $1.37. The company’s revenue of $19.65 billion increased 10.3% from a year ago. Moreover, the company managed to beat EPS expectations by 10 cents. Revenue also beat estimates by $370 million. Operational sales increased 9.5% and domestic sales increased 9.7%. International sales grew 10.9%, reflecting operational growth of 9.3% and a positive currency impact of 1.6%.

Chairman and CEO Alex Gorsky said the growth in the third quarter was driven by the strong performance of the pharmaceutical business, among other recent acquisitions.

Harley-Davidson Inc. (HOG, Financial) is up after posting EPS of 40 cents and revenue of $962.14 million, which declined from $1.09 billion in the prior-year quarter. The company beat EPS expectations by one cent and revenue estimates by $8.88 million.

For the year, the company expects the operating margin to be down about one percentage point from the previous year. Further, it expects 2017 capital expenditures to be between $200 million and $220 million.

Gainers

Losers

Disclosure: The author has no positions in any stocks mentioned.