Johnson & Johnson Beats Earnings Estimates

Johnson and Johnson released its latest earnings reports before opening bell this morning. The company reported adjusted earnings of $1.49 per share and revenue of $17.1 billion, a 7.4% year over year decline. Analysts had been expecting earnings of $1.46 per share on $17.45 billion in revenue.


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Johnson & Johnson’s reported earnings decline

Johnson & Johnson’s GAAP earnings were $1.20 per share, compared to last year’s $1.66 per share. The company said excluding impacts from acquisitions, divestures, and sales of hepatitis C products, global sales rose 5.6% year over year with a 7.7% increase in domestic sales and a 3.8% increase in international sales. Including these impacts, overall operational sales rose 0.8%, including a decline of 0.6% in domestic sales and a decline of 13.7% in international sales. Johnson & Johnson recorded a negative impact of 15.8% from currencies.

Worldwide Consumer sales declined 7.7% to $3.3 billion, with positive contributors being over-the-counter drugs Tylenol, Motrin, and Zyrtec, feminine care products, skin care products Neutrogena and Aveeno, and Listerine oral care products.

Worldwide Pharmaceutical sales fell 7.4% to $7.7 billion, with strong growth in type 2 diabetes drug Onvokana/ Invokamet, blood cancer drug Imbruvica, and anticoagulant Xarelto. Remicade sales came up short of expectations at $1.61 billion, compared to the consensus estimate of $1.65 billion.

Worldwide Medical Devices recorded a 7.3% year over year decline in sales to $6.1 billion with growth from Acuvue contact lenses, endocutters in the Surgical Care division, biosurgicals, and international energy products.

Johnson & Johnson raises guidance

Johnson & Johnson management also increased the lower end of their guidance range, pushing it from between $6.10 and $6.20 per share to between $6.15 and $6.20 per share for the full year. Also today, the company announced that its board had approved a $10 billion share buyback program.

As of this writing, shares of Johnson & Johnson were up 0.56% at $96.55 per share in premarket trading.