Johnson & Johnson (JNJ -0.37%) topped expectations for its latest quarter on Tuesday, and investors rewarded it with a nice bump in its stock price. The sprawling healthcare company's shares rose by 2.4% on the day, easily beating the S&P 500 index's gain of 0.7%.
Johnson & Johnson unveiled its third-quarter results Tuesday morning, which showed that the company earned $23.3 billion in sales. This was nearly 11% higher on a year-over-year basis, although it landed slightly below the consensus analyst estimate of just over $23.7 billion.
As for the bottom line, adjusted net profit was slightly under $6.97 billion for a 19% year-over-year improvement. On a per-share basis, this shook out to $2.60, notably higher than the average prognosticator forecast of $2.36.
Referring to its three core business units, CEO Alex Gorsky was quoted as saying that the top- and bottom-line growth was due to "robust above-market results in pharmaceuticals, ongoing recovery in medical devices, and strong growth in consumer health."
One product that helped juice the healthcare giant's results is the coronavirus vaccine developed by its Janssen Pharmaceuticals subsidiary. It is the third of three vaccines either fully approved or granted Emergency Use Authorization (EUA) by the Food and Drug Administration, having received its EUA in February. It is also authorized for use in numerous other jurisdictions around the world, including the 27-member European Union.
While the coronavirus seems to be slowing its deadly march, it's still a major health threat. That, combined with the upward momentum of Johnson & Johnson's many other businesses, is likely what's behind the company's increase in full-year 2021 guidance.
It now believes it will post year-over-year sales growth of 12.9% to 13.5% during the period; previously it was guiding for 12.5% to 13.5%. Adjusted per-share earnings are estimated to be $9.77 to $9.82, up from the earlier expectations of $9.60 to $9.70. In 2020, Johnson & Johnson posted nearly $82.6 billion in revenue and $21.4 billion ($8.03 per share) in net profit.