Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Strong Pharmaceutical Sales Send Johnson & Johnson Handily Past Wall Street Estimates

Health care conglomerate Johnson & Johnson (NYSE: JNJ  ) reported its third-quarter earnings results before the opening bell today, topping Wall Street's expectations and boosting its guidance slightly from its previous forecast.

According to the press release, for the quarter J&J delivered an increase in sales of 3.1% to $17.6 billion while adjusted EPS rose to $1.36, $0.04 higher than the consensus figure and a nearly 9% improvement from the year-ago period.

Leading the charge for J&J was its pharmaceutical division, which demonstrated year-over-year sales growth of 10.8%. This can be attributed to double-digit international sales growth of 14% (excluding negative currency effects) and impressive year-over-year growth in its oncology and immunology divisions, which jumped by 56.2% and 12.4%, respectively. Most notably, advanced prostate cancer drug Zytiga grew sales by 75.1% worldwide while blockbuster rheumatoid arthritis and Crohn's disease drug Remicade, which accounts for 24% of J&J's total pharmaceutical sales, saw sales increase 6.2%.

On the flip side, negative currency effects and weaker medical device sales kept J&J's results from being truly great. Despite acquiring Synthes for $19.7 billion last year, J&J's medical device and diagnostic segment sales dipped 2% globally, hurt most by its U.S. consumers who chose to hold off on elective procedures. The company's diabetes care and diagnostic segments were the biggest drag, down 11.4% and 10.5%, respectively.

Nonprescription drugs, responsible for most of J&J's roughly four dozen product recalls over the past four years, saw sales jump 18% in the U.S. and 6.4% worldwide as more products returned to stores. Overall, the consumer health business, which also makes dental, wound and skin care items such as the Aveeno and Neutrogena lines, posted a 0.8% sales increase, to $3.61 billion.

Looking forward, J&J slightly boosted its full-year EPS forecast to a range of $5.44-$5.49 from its second-quarter forecast that had called for EPS in the range of $5.40-$5.47.

-- Material from The Associated Press was used in this report.

Dividends: The oft-traveled path to riches
One of the best parts of owning big pharma stocks is their attractive dividends, but smart investors know the importance of diversifying -- seeking high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by clicking here.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2682690, ~/Articles/ArticleHandler.aspx, 10/1/2016 5:02:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 19 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
JNJ $118.13 Up +0.86 +0.73%
Johnson and Johnso… CAPS Rating: *****