Despite the impact of new competition from Boston Scientific's
For the second quarter, J&J's earnings -- excluding the impact of one-time charges on last year's quarter -- grew 17.1% to $0.82 per share, or $2.5 billion. Meanwhile, sales climbed 11.1% to $11.5 billion, with a positive currency impact of 2.6%.
Leading the way, the medical device and diagnostics business grew sales 11.8% to $4.1 billion, with international sales increasing 17% to $2 billion. The company cited strong growth from LifeScan's blood glucose monitoring products and Vistakon's disposable contact lenses, among others.
Also, the Cordis unit's Cypher drug-coated stent provided a positive boost in year-over-year comparisons, despite a rough hit compared with the first quarter. As we have noted, Boston Scientifc's Taxus stent has dominated the domestic stent market since its introduction on March 8. J&J had temporarily owned the market; it claimed only 30% of the U.S. market during the second quarter.
In other areas, J&J's pharmaceutical sales experienced worldwide growth of 11.1% to $5.4 billion, led by strong performances from Remicade for rheumatoid arthritis and Crohn's disease, the antiepileptic drug Topamax, and Duragesic, a transdermal patch for chronic pain. However, sales of anemia treatments Procrit and Eprex were hurt by competition.
The worldwide consumer segment also posted a healthy 10% growth in sales to $2 billion, driven by strong sales of McNeil Nutritional's Splenda sweetener, as well as skin-care products from the likes of Neutrogena and RoC.
On March 15, Mathew Emmert -- the Fool behind the Motley Fool Income Investor -- made his case for Johnson & Johnson's stock. It's a worthwhile read, and the company's business performance in the second quarter hasn't disappointed (and neither has the stock, for that matter, appreciating about 10% since then).
But as Alyce Lomax pointed out this time last quarter, the competition in J&J's stent business is an increasing point of interest.
For more, check out the following articles:
- Boston Scientific's Stent Gold Mine, by W.D. Crotty
- Stent Wars Going Strong, by Seth Jayson
- J&J, Guidant Join Forces, by Alyce Lomax
Take a no-obligation free trial of Motley Fool Income Investor today.
Fool contributor Jeff Hwang owns none of the companies mentioned above.
More from The Motley Fool
This Is the Most Important Thing When It Comes to Paying Off Debt
Fixing finances is a popular New Year's resolution and there are ways to make it happen.
3 Smart Dividend ETFs for 2018
Don't miss out on these income-producing funds.
The 1 Chart You Need to Decide When to Take Social Security Benefits
Don't miss out on thousands of dollars by claiming benefits at the wrong time!