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J&J (JNJ) Beats Q3 Earnings & Sales, Shares Rise

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Johnson & Johnson (JNJ - Free Report) , the bellwether of healthcare companies, has a strong presence in the pharmaceutical, medical devices and consumer care markets across the world. This New Jersey-based company is well known for its baby-care products and brands like Tylenol in addition to drugs like Remicade and Imbruvica.

However, like many of its peers, JNJ is facing generic competition and pricing pressure for some of the products in its pharmaceutical segment.

In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential as well as the performance of new products apart from the usual top-and bottom-line numbers.

J&J’s performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters was 3.02%

Currently, JNJ has a Zacks Rank #4 (Sell), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: JNJ beat on third quarter earnings - the company reported EPS of $2.12 while our consensus called for EPS of $2.00.

Revenues Beat: Revenues also beat expectations. J&J posted revenues of $20.73 billion, compared to our consensus estimate of $20.08 billion.

Key Statistics: Pharmaceutical segment sales rose 5.1% year over year to $10.88 billion, reflecting 6.4% operational growth and 1.3% negative currency impact. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide pharmaceutical sales increased 6.4%, improving from 4.4% increase in the previous quarter. The sales increase was led by the company’s oncology drugs Imbruvica and Darzalex as well as psoriasis treatment, Stelara.

Ups 2019 Outlook: J&J raised its full-year earnings and sales outlook on continued strength of its business.

2019 adjusted earnings per share are expected in the range of $8.62 - $8.67, up from prior range of $8.53 - $8.63. The guidance range indicates growth of 5.4-6.0% (previously 4.3-5.5%). Revenues are expected in the range of $81.8-$82.3 billion, up from the previous range of $80.8-$81.6 billion, including currency impact.

Stock Price Impact: Shares rose more than 2.0% in pre-market trading.

Check back later for our full write up on this JNJ earnings report later!

Johnson & Johnson Price and Consensus

 

Johnson & Johnson Price and Consensus

Johnson & Johnson price-consensus-chart | Johnson & Johnson Quote

 

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