Johnson & Johnson (JNJ, Financial) released its third-quarter results on October 15 before the market opened. The world’s biggest maker of health care products surpassed Wall Street’s earnings and revenue estimates thanks to robust sales of cancer and other prescription drugs.
The company did face mounting legal costs related to lawsuits surrounding its talc and opioids, but the impact on the company’s overall quarterly growth was negligible.
By the numbers
The New Brunswick, New Jersey-based company posted earnings of $2.12 per share, a 3% increase from the prior-year quarter. Revenue grew 2% from the prior-year quarter to $20.73 billion. Analysts were anticipating earnings of $2.01 per share on $20.07 billion in revenue.
In a statement, CEO Alex Gorsky commented on the company's performance:
“Our third-quarter results represent strong performance, driven by competitive underlying growth in Pharmaceuticals and Medical Devices, as well as continued optimization in our Consumer business.”
Segment performance
Operational sales of consumer health products, barring the impact of acquisitions and divestitures, inched up 1.3%, thanks to strong sales of Neutrogena beauty products as well as over-the-counter products that comprises Tylenol analgesics, international upper respiratory products and digestive health products.
The pharmaceutical unit, which makes up more than 50% of the company’s revenue, experienced operational sales growth of 6.4% since last quarter, without considering the net impact of acquisitions and divestitures. The company cited strong sales of anti-inflammatory treatment Stelara as well as Imbruvica, an oral, once-daily therapy approved for use in treating certain B-cell malignancies.
Medical device operational sales, excluding acquisitions and divestitures, surged 5.3% on account of the growth of electrophysiology products in the Interventional Solutions business and ACUVUE contact lenses in the Vision business. The segment also saw strong sales of international energy products in the Advanced Surgery business.
Guidance
Johnson & Johnson predict 2019 sales to be between $81.8 billion and $82.3 billion, up from its previously forecasted range of $80.8 billion and $81.6 billion. Earnings are estimated to be in the range of $8.62 to $8.67 per share for the full year.
“As we look ahead, we remain confident in the strength of our broad-based business model, which is fueled by our disciplined portfolio management, focus on transformational innovation and dedicated employees around the world who position us for success today and well into the future,” Gorsky said.
Disclosure: I do not hold any positions in the stocks mentioned.
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