JNJ beats earnings on pharma sales, cuts full year forecast
Posted on July 17, 2018 by Medtech[y] Staff
- Johnson & Johnson Q2 earnings were released today, beating on both the top and bottom lines with sales of $20.8 billion.
- Q2 EPS was $1.45, an increase of 14.8%.
- JNJ's Pharmaceutical business led the way with sales of $10.4 billion for the second quarter, representing an increase of 19.9% versus the prior year. Domestic sales increased 17.7%; international sales increased 22.9%, which reflected an operational increase of 17.5% and a positive currency impact of 5.4%.
- JNJ's Consumer business was a drag on revenue, with sales of $3.5 billion for the second quarter 2018, representing an increase of 0.7% versus the prior year. Domestic sales decreased 0.7% with international sales increasing 1.9%.
- JNJ'S Medical Devices business increased 3.7% versus the prior year on sales of $7.0 billion for the second quarter 2018.
- JNJ cut its full-year adjusted earnings and sales forecasts.
“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. We remain focused on investing in innovation and meeting the needs of our customers by delivering innovative products and solutions that position the company to deliver long-term, sustainable growth,” said Alex Gorsky, Chairman and Chief Executive Officer. “Our talented J&J colleagues are united in our efforts to address some of the most critical health and consumer needs of people around the world.”
Other notes from the quarter
- JNJ announced acceptance of the binding offer from Platinum Equity to acquire its LifeScan business for approximately $2.1 billion, subject to customary adjustments.
- JNJ announced receipt of a binding offer from Fortive Corporation to acquire its Advanced Sterilization Products business for an aggregate value of approximately $2.8 billion, subject to customary adjustments.
- The FDA approved iDESIGN Refractive Studio, part of a next generation LASIK platform that measures the eye inside and out to enable highly precise personalized vision correction.
- While JNJ plans to fight the ruling, the company was ordered to pay $550 million in a talc asbestos cancer case.