Johnson & Johnson Again Buoyed by Pharmaceuticals
October 18 2016 - 7:49AM
Dow Jones News
By Anne Steele
Johnson & Johnson lifted the low end of its guidance and
posted better-than-anticipated results in the latest quarter as the
health-care giant's pharmaceutical business continues to buoy its
top line.
The New Brunswick, N.J., company now expects earnings for the
year of $6.68 to $6.73 a share, compared with its previous guidance
for $6.63 on the bottom. It backed its revenue forecast of $71.5
billion to $72.2 billion.
Chief Executive Alex Gorsky said results reflect the success of
new product launches and the strength of core businesses, "driven
by strong growth in our pharmaceuticals business."
Shares, which have risen 15% so far this year, edged 0.9% higher
premarket to $119.59.
"With a number of regulatory approvals, several new drug
application submissions and new breakthrough therapy designations
from the FDA, we are increasingly confident in our pipeline
expectation of filing 10 new pharmaceutical products between 2015
and 2019, each with revenue potential over $1 billion," he
said.
Still, J&J faces the threat of lower-priced competition
emerging for some top-selling prescription drugs. And with about
half of its sales overseas, J&J's results have been pressured
by a strengthening U.S. dollar and weakness in some emerging
markets.
J&J's pharmaceutical business, the company's largest,
continued to propel the company. Prescription-drug sales grew 9.2%
to $8.4 billion, driven by strength in new products including
blood-cancer drug Imbruvica, blood thinner Xarelto and multiple
myeloma drug Darzalex.
J&J other segments, however, continued to lag. During the
quarter, sales of J&J consumer health products slipped 1.6% to
$3.26 billion, dragged by currency challenges.
Meanwhile, J&J's medical device sales rose just 1.1% to
$6.16 billion. The business used to be J&J's largest, but has
stumbled amid pricing pressures, increased competition and market
changes. In response, J&J has exited certain areas, rejiggered
how it sells devices and focused on high-growth categories like
robotics and staplers.
In all for the September quarter, J&J posted a profit of
$4.27 billion, or $1.53 a share, up from $3.36 billion, or $1.20 a
share, in the same period a year ago.
Excluding certain items, adjusted earnings ticked up to $1.68 a
share. Analysts polled by Thomson Reuters were looking for an
adjusted $1.66 a share. Revenue climbed 4.2% to $17.8 billion,
edging in just above analyst estimates for $17.74 billion.
Unfavorable currency rates shaved 0.1% off the quarter's total.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 18, 2016 07:34 ET (11:34 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Johnson and Johnson (NYSE:JNJ)
Historical Stock Chart
From Aug 2024 to Sep 2024
Johnson and Johnson (NYSE:JNJ)
Historical Stock Chart
From Sep 2023 to Sep 2024