Johnson & Johnson (JNJ) -) posted stronger-than-expected second quarter earnings Thursday, while boosting its full-year profit outlook thanks in part to robust medical device and pharmaceutical sales.
Johnson & Johnson said adjusted earnings for the three months ending in June were pegged at $2.80 per share, up 8.1% from the same period last year and firmly ahead of the Street consensus forecast of $2.62 per share. Group revenues, Johnson & Johnson said, rose 6.3% to $25.53 billion, a figure that also topped analysts' estimates of a $24..63 billion tally.
Pharmaceuticals sales were up 3.1% to $13.73 billion while consumer health sales rose 5.4% to $4.01 billion. Medtech sales jumped 12.9% to $7.78 billion. .
The company also lifted its 2022 earnings forecast by around 5 cents per share, to between $10.70 and $10.80 per share, up from its prior forecast of between $10.60 and $10.70 per share, with adjusted operational sales growth of between $99.3 billion and $100.3 billion.
The group also held its quarterly dividend at $1.19 per share
“Our robust performance in the second quarter and first half of 2023 is a testament to the hard work and commitment of our colleagues around the world,” said CEO Joaquin Duato. “We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on Pharmaceutical and MedTech innovation.”
Johnson & Johnson shares were marked 5.95% higher in the opening hour of trading immediately following the earnings release to change hands at $168.17 each.
"Overall, a very nice beat and raise performance in Q2, although it is important to note that some impressive performances by leading drugs actually came in below consensus," said Lee Brown, Global Sector Lead for Healthcare at global research firm Third Bridge.
"While that could present some concern, the stronger performances by drugs that typically garner far less attention, as well as management's demonstrated confidence in its second half projections, should be enough to keep investors comfortable, if not happy, with JNJ's story," he added.
Johnson & Johnson agreed to pay $8.9 billion in April -- more than four times its original forecast -- to settle a class-action lawsuit linked to allegations its talc-based products, including its iconic Baby Powder, caused cancer.
Kenvue, the consumer health division spun-off by Johnson & Johnson in May, said its sales increased by 5.4% to $4 billion over the three months ending in June, and sees net sales growth for the full-year of between 4.5% and 5.5%.
Johnson & Johnson said it will split-off Kenvue shares through an exchange offer "as the form of its next step in the separation, subject to market conditions."
