Johnson & Johnson beats market estimates in Q2

Johnson & Johnson (NYSE: JNJ) surpassed analysts’ expectations on revenue and earnings for the second quarter of 2019. Shares were up by 0.77% in premarket hours on Tuesday.  

Net sales declined 1.3% to $20.6 billion from the same period last year but came ahead of the forecast of $20.3 billion.  

Reported net income rose over 41% to $5.6 billion, or $2.08 per share, compared to the year-ago period. Adjusted earnings rose 22% to $6.9 billion, or $2.58 per share, beating estimates of $2.43 per share.  

On a reported basis, sales declined 2.2% in the US and 0.3% internationally versus last year. On an adjusted operational basis, US sales reflected no change while international sales rose 7.6%.

During the quarter, sales rose 1.2% in the Consumer segment and 1.7% in the Pharmaceuticals segment on a reported basis while in the Medical Devices unit, sales declined 6.9%. On an adjusted operational basis, all three divisions recorded sales increases.

Also read: Johnson & Johnson Q2 2019 Earnings Preview

Adjusted operational sales in the Consumer division grew 2.3%, driven by NEUTROGENA, AVEENO and OGX beauty products as well as OTC products. Sales in Pharmaceuticals rose 4.4%, helped by products like DARZALEX, STELARA and IMBRUVICA. In Medical Devices, sales increased 3.2%, driven by growth in electrophysiology products, endocutters and international energy products.     

For the full year of 2019, J&J raised its reported sales guidance to a range of $80.8 billion to $81.6 billion versus the previous outlook of $80.4 billion to $81.2 billion. Adjusted EPS is expected to be $8.53-8.63.

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