Johnson & Johnson quarterly profit beats on higher pharma unit sales

Will stocks get a bump from earnings?

Pacer ETFs’ Sean O’Hara and Mizuho Securities’ Steven Ricchiuto on the outlook for stocks.

July 17 (Reuters) – Johnson & Johnson on Tuesday topped analysts' estimates for quarterly profit and revenue, driven by higher sales of rare-disease treatments from its acquisition of Actelion and cancer drugs Zytiga and Darzalex.

Continue Reading Below

Sales across the company's three main units rose, with the pharmaceutical business surging nearly 20 percent to $10.35 billion, accounting for almost half of total sales in the second quarter.

The company's shares were volatile in premarket trading, recovering from an initial drop to trade up 1.4 percent at $126.46.

J&J has vowed to appeal a Missouri jury verdict that earlier this month ordered the company to pay a record $4.69 billion to 22 women, who had claimed their cancer was caused by J&J talc products.

The company is facing about 9,000 lawsuits alleging that its talc-based products, including its baby powder, caused ovarian cancer and mesothelioma, a rare cancer linked to asbestos. The company has denied that the products contain asbestos or cause cancer of any kind.

Net earnings rose to $3.95 billion, or $1.45 per share, in the second quarter, from $3.83 billion, or $1.40 per share, a year earlier.


Excluding items, the company reported a profit of $2.10 per share, beating analysts' average estimate of $2.07.

Total sales rose to $20.83 billion from $18.84 billion a year ago, above analysts' estimates of $20.39 billion.

International revenue for J&J rose 11.8 percent in the reported quarter, and accounted for nearly half of its total sales.

The healthcare conglomerate said it expects full-year sales of $80.5 billion to $81.3 billion, compared with a prior estimate of $81.0 billion to $81.8 billion. The company cited a strengthening dollar for the trim.

Analysts had expected full-year profit of $8.12 per share and sales of $81.47 billion, according to Thomson Reuters I/B/E/S. J&J said it now expects adjusted earnings of $8.07 to $8.17 per share, compared with an earlier forecast of $8.00-$8.20 per share.

(Reporting by Manas Mishra in Bengaluru; Editing by Sriraj Kalluvila)

Source: Read Full Article