J&J Raises Sales Forecast on Pharmaceutical Growth
Johnson & Johnson (JNJ.N) raised its revenue guidance for the year, as strong sales in its pharmaceutical unit helped cushion a decline in the consumer and medical technology businesses.
- Second-quarter adjusted earnings were US$2.58 a share, topping the US$2.45 average of analysts’ estimates.
- The company’s full revenue is actually down from a year prior. Part of that can be attributed to the company’s divestiture of its medical sterilization business, ASP, which it sold to Fortive Corp. earlier this year.
- The company was also hit badly by foreign exchange rates. Almost half of J&J’s sales come from outside the U.S., and its fastest-growing segment -- overseas pharmaceuticals -- had its growth cut nearly in half because of currency fluctuations.
- J&J’s drug business is the largest of the company’s three main segments and accounts for more than half of all revenue. Its cancer drugs, including Darzalez and Imbruvica, drove growth in the quarter and were up 9.8% from a year prior.
- The shares were up 0.4 per cent to US$135.19 at 7:08 a.m. in New York. The stock is up 4.4 per cent this year to date, trailing the broader market.