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Johnson & Johnson Posts Earnings Beat, Ups Outlook

Johnson and Johnson released its second quarter earnings report before opening bell this morning, posting adjusted earnings of $1.71 per share, a 3.9% decline, on revenue of $17.8 billion, an 8.8% decline year over year. Analysts had been looking for earnings of $1.68 per share and $17.76 billion in sales. In the same quarter last year, Johnson & Johnson reported sales of $$19.5 billion.

Reported earnings were $1.61 per share, compared to last year’s $1.51 per share.

Johnson & Johnson’s earning by segment

Johnson & Johnson saw $3.5 billion in sales for its Worldwide Consumer division, a 7% year over year decline. The decline was due to a negative impact of 9.3% due to currency exchange rates. Operationally, the segment saw sales increase 2.3%. Domestic sales in the division increased 2.7%, while international sales fell 12.2%, including a 2.1% operational increase and a negative impact of 14.3% due to currencies. Sales of Zyrtec, Tylenol, feminine protection products and Listerine contributed to the results.

Worldwide Pharmaceutical sales fell 6.6% to $7.9 billion. Currencies also weighed on the pharmaceutical division, negatively impacting the results by 7.6%. Operationally, the segment grew 1%. Domestic sales in the division fell 1.5%, while international sales declined 12.7%. The negative impact from currencies was 16.5% for the segment.  Drivers of sales in the division include Hepatitis C drugs, which saw a 9.7% underlying operational growth globally. Other pharmaceuticals which drove sales during the quarter include type 2 diabetes drug Invokana/ Invokamet, blood cancer drug Imbruvica, and prostate cancer drug Zytiga.

Worldwide Medical Devices saw a 12.2% decline in sales to $6.4 billion, including a negative impact of 7.5% from currencies.

Johnson & Johnson ups guidance

Johnson & Johnson also increased its guidance for adjusted earnings for the full year. The consumer products company now expects adjusted earnings of between $6.10 and $6.20 per share. The previous guidance suggested earnings of between $6.04 and $6.19 per share for the full 2015 fiscal year.

Shares of Johnson & Johnson were up 0.43% at $100.70 per share.