Categories AlphaGraphs, Earnings, Health Care

Johnson & Johnson (JNJ) Q3 earnings, sales beat Street view; stock gains

Earnings of healthcare conglomerate Johnson & Johnson (NYSE: JNJ) increased and topped the Street view in the third quarter helped by a 2% growth in sales. Encouraged by the positive outcome, the management revised up its full-year earnings and sales outlook. The company’s stock gained early Tuesday following the announcement.

Johnson & Johnson (JNJ) Q3 earnings rise 3% on higher revenues

Adjusted earnings rose 3.4% annually to $2.12 per share in the third quarter from $2.05 per share last year and topped the estimates. Reported profit increased to $4.83 billion or $1.81 per share in the three-month period from $3.93 billion or $1.44 per share in the prior-year quarter.

Top-line Beats

Net sales, meanwhile, moved up to $20.73 billion from $20.35 billion in the third quarter of 2018. Market watchers were looking for a lower top-line number. Sales grew 1.2% in the US and advanced 2.6% in the international market. Segment-wise, Consumer and Pharmaceutical sales grew 1.6% and 5.1% respectively, while Medical Devices sales dropped 3.1%.

Related: Johnson & Johnson tumbles on rating downgrade

“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,” said CEO Alex Gorsky.

Outlook

The company revised up its full-year 2019 sales outlook to the range of $81.8 billion to $82.3 billion from the previous forecast of $80.8-$81.6 billion, representing a 0.2-0.7% annual increase. The guidance for adjusted earnings has been raised to the range of $8.62 per share to $8.67 per share from $8.53-$8.63 per share, which represents a 5.4-6.0% growth.

To drive growth during the remainder of the year, the management bets on its broad-based business model, supported by disciplined portfolio management and focus on transformational innovation.

Also see: Johnson & Johnson Q2 2019 Earnings Call Transcript

After making a positive start to the year, Johnson & Johnson’s shares pared the initial gains in recent weeks and slipped below the $130-mark. The stock, which lost about 6% in the past twelve months, gained modestly during Tuesday’s pre-market trading session.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

Broadcom (AVGO) seems a good buy ahead of VMware deal. Here’s why

The performance of Broadcom, Inc. (NASDAQ: AVGO) has been impressive in the last few years -- a period of high uncertainty -- as the successful business model helped it remain

Delta Air Lines (DAL): A look at the airline’s expectations for the near term

Shares of Delta Air Lines Inc. (NYSE: DAL) were down 2% on Monday. The stock has dropped 12% year-to-date. The company delivered double-digit revenue growth for its most recent quarter

Why it’s a good idea to keep an eye on Autodesk (ADSK) stock

Autodesk, Inc. (NASDAQ: ADSK) is a market leader in computer-assisted design software, catering mainly to the architecture, engineering, construction, and manufacturing sectors with its mission-critical solutions. The company, which is

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top