Johnson & Johnson Beats Q3 Earnings, Revenue Estimates

Johnson & Johnson Beats Q3 Earnings, Revenue Estimates 1

Johnson & Johnson beat earnings and revenue estimates in the third quarter. The company posted earnings of $2.05 per share, beating estimates of $2.03 per share.

Johnson & Johnson has surpassed earnings-per-share estimates four times. In the third quarter, the company posted net sales of $20.35 billion, surpassing estimates by 2.19%. During the same quarter last year, the company posted revenues of $19.65 billion. Johnson & Johnson topped revenue estimates three times in the last four quarters.

Third-quarter net income came in at $3.93 billion, or $1.44 per share, up from $3.76 billion.

The company’s pharmaceuticals segment generated $10.35 billion in revenue, beating estimates of $10.02 billion. Sales of medical devices hit $6.59 billion, which missed expectations of $6.64 billion. Consumer sales came in at $3.42 billion in sales, beating estimates of $3.34 billion.

Third-quarter sales of Darzalex, the company’s cancer drug, hit $498 million. Sales failed to meet analyst estimates of $538.7 million. Sales of Stelara, an immunotherapy treatment designed for plaque psoriasis, hit $1.31 billion. Analysts were expecting sales to hit $911 million.

Johnson & Johnson, which owns over 275 companies in 60 nations, adjusted its full-year forecast to $8.13-$8.18 per share. The adjusted forecast is up from $8.07-$8.17 per share. Wall Street is expecting full-year earnings of $8.15 per share. Revenue is projected to come in at $81-$81.4 billion. Analysts were expecting revenue of $81.21 billion.

Earlier in the month, Johnson & Johnson entered an agreement with Arrowhead Pharmaceuticals to develop a Hepatitis B treatment and to take a minority stake in the company. The deal could be worth over $3.7 billion.

Johnson & Johnson’s relaunch of its baby care line has helped drive sales. The company had been losing ground in this market due to niche upstart brands and was facing a 20% decline in sales since 2011. Sales of baby care increased 20% to $120 million, up from $100 million in the same period last year.

As part of its relaunch, the company cut the number of ingredients in its products in half, removed sulfates and dyes, and replaced ingredients like mineral oil with coconut oil. The packaging was also redesigned, adding pumps to many products to make them easier for parents to use while holding the baby.

Although Johnson & Johnson surpassed expectations with sales and revenue, the company’s stock is still down 4.1% since the start of the year. The S&P 500, by comparison, has gained 2.9% during the same period.

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.