Health care giant Johnson & Johnson in 14 October reported a 30% jump in third-quarter profit, beating Wall Street expectations, due to higher sales of consumer products and medical devices and a large restructuring charge a year ago.
JNJ earned $3.31 billion or $1.17 per share in the quarter compared with $2.55 billion, or 88 cents per share, in the year-earlier period, when the company took restructuring charges. Revenue climbed 6.3%, to $15.9 billion from $14.97 billion. Quarterly sales rose 6.4% to $15.92 billion, somewhat higher than the Reuters Estimates forecast of $15.71 billion. Sales of consumer products, which range from Band-Aids to Listerine mouthwash, rose 13.1% to $4.1 billion. Medical device sales rose 8.8% to $5.71 billion, although sales of the company's Cypher drug-coated stent fell more than 20% to $289 million due to competition. Prescription drug sales edged up 0.2% to $6.11 billion, was hurt by the U.S. patent expiration in June.
Analysts Expectation:
Analysts surveyed by Thomson Financial expected earnings per share of $1.11 and revenue of $15.69 billion. Jan Wald, an analyst with Stanford Group Co, said J&J posted solid results thanks largely to its diversified nature, although he does not expect its pharmaceuticals sales to greatly improve for another two to three years -- after new products are approved.
Full Year Outlook: Raised
Johnson & Johnson raised its full-year profit forecast to $4.50 to $4.53 per share, excluding one-time charges and other items. During the last quarter, it had forecast a profit of $4.45 to $4.50 a share.
For the first nine months, net income jumped 25%, to $10.24 billion, or $3.60 per share, up from $8.2 billion, or $2.81 per share. Revenue was up 7.6%, to $48.57 billion from $45.14 billion.
Reaction of the Earnings:
Shares of J&J rose 5.9 percent to $66.40 in morning trading on the New York Stock Exchange.
JNJ earned $3.31 billion or $1.17 per share in the quarter compared with $2.55 billion, or 88 cents per share, in the year-earlier period, when the company took restructuring charges. Revenue climbed 6.3%, to $15.9 billion from $14.97 billion. Quarterly sales rose 6.4% to $15.92 billion, somewhat higher than the Reuters Estimates forecast of $15.71 billion. Sales of consumer products, which range from Band-Aids to Listerine mouthwash, rose 13.1% to $4.1 billion. Medical device sales rose 8.8% to $5.71 billion, although sales of the company's Cypher drug-coated stent fell more than 20% to $289 million due to competition. Prescription drug sales edged up 0.2% to $6.11 billion, was hurt by the U.S. patent expiration in June.
Analysts Expectation:
Analysts surveyed by Thomson Financial expected earnings per share of $1.11 and revenue of $15.69 billion. Jan Wald, an analyst with Stanford Group Co, said J&J posted solid results thanks largely to its diversified nature, although he does not expect its pharmaceuticals sales to greatly improve for another two to three years -- after new products are approved.
Full Year Outlook: Raised
Johnson & Johnson raised its full-year profit forecast to $4.50 to $4.53 per share, excluding one-time charges and other items. During the last quarter, it had forecast a profit of $4.45 to $4.50 a share.
For the first nine months, net income jumped 25%, to $10.24 billion, or $3.60 per share, up from $8.2 billion, or $2.81 per share. Revenue was up 7.6%, to $48.57 billion from $45.14 billion.
Reaction of the Earnings:
Shares of J&J rose 5.9 percent to $66.40 in morning trading on the New York Stock Exchange.
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