Johnson & Johnson (NYSE: JNJ) reported second-quarter earnings and revenue beats on Tuesday morning, sending the stock more than 3 percent higher. Johnson & Johnson’s strong quarter was fueled by its pharmaceutical business, and analysts say the company’s drug pipeline is well-positioned for the long-term.
Johnson & Johnson reported second-quarter adjusted earnings per share of $2.10 on revenue of $20.8 billion. Both numbers topped consensus analyst estimates of $2.07 and $20.39 billion, respectively. Revenue was up 10.6 percent compared to a year ago.
After adjusting for the impact acquisitions, divestitures and foreign exchange rates, global sales were up 6.3 percent year-over-year.
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Johnson & Johnson’s cancer drugs were strong performers in the quarter. The company’s pharmaceuticals segment posted $10.4 billion in revenue, up 20 percent. Analysts has expected just $9.95 billion. Oncology drug sales were up 42.2 percent to $2.46 billion in the quarter.
One of the best-performing drugs was multiple myeloma treatment Darzalex. Darzalex sales surged nearly 80 percent to $511 million.
Medical device sales were up 3.7 percent to $7 billion, beating Wall Street forecasts of $6.9 billion.
Johnson & Johnson’s consumer segment was one of the few areas of weakness in the quarter. Consumer revenue was up just 0.7 percent to $3.50 billion, missing analyst estimates of $3.59 billion. Baby care sales dropped 7.7 percent globally and 21 percent in the U.S.
“Our strong second-quarter results reflect double-digit growth in our pharmaceutical business and the accelerating sales momentum in our medical devices business, driven by the continued growth of our market leading products and strategic new launches,” CEO Alex Gorsky says in a statement.
Looking ahead, Johnson & Johnson lowered its full-year revenue forecast from a previous range of between $81 billion and $81.8 billion to a new range of between $80.5 billion and $81.3 billion. The company also narrowed its full-year EPS guidance from a previous range of between $8 and $8.20 to a new range of between $8.07 and $8.17.
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CRRA analyst Jeffrey Loo says Johnson & Johnson’s pharma business will continue to drive upside for investors.
“We view JNJ as uniquely situated with unmatched depth and breadth in ever-growing global health care markets, and with solid positions in drugs, medical devices and consumer products,” Loo says.
CFRA has a “buy” rating and $170 price target for JNJ stock.
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Johnson & Johnson (JNJ) Stock Rises on Earnings Beat originally appeared on usnews.com
