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Johnson & Johnson Q3 Results Top Estimates; Boosts FY20 Outlook

Healthcare company Johnson & Johnson (JNJ) on Tuesday reported that its profit for third quarter that more than doubled from last year, powered by better-than-expected procedure recovery in medical devices, growth in consumer health, and continued strength in pharmaceuticals.

Both adjusted earnings per share and revenues topped analysts’ expectations. The company also boosted its earnings and sales forecast for the full-year 2020.

For the third quarter, net earnings more than doubled to $3.55 billion or $1.33 per share from $1.75 billion or $0.66 per share in the prior-year quarter.

Excluding items, adjusted net earnings for the quarter were $5.87 billion or $2.20 per share, compared to $5.67 billion or $2.12 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.98 per share for the quarter. Analysts’ estimates typically exclude special items.

Sales for the quarter rose 1.7 percent to $21.08 billion from $20.73 billion in the same quarter last year. Operational sales growth was also 1.7 percent. Analysts expected revenues of $20.20 billion for the quarter.

Region-wise, sales grew 2.7 percent to $11.09 billion and international sales edged up 0.6 percent to $10.0 billion from last year.

Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.1 percent, driven primarily by U.S. growth in over-the-counter products including Tylenol, Listerine, OGX and BAND-AID Brand Adhesive Bandages.

Pharmaceutical worldwide operational sales grew 4.7 percent, driven primarily by Darzalex (daratumumab), Stelara (ustekinumab), Imbruvica (ibrutinib). This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in Remicade (infliximab) and Zytiga (abiraterone acetate).

Medical Devices worldwide operational sales declined 3.3 percent, primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to Surgery, Orthopaedics, and Vision businesses.

Looking ahead to fiscal 2020, the company now projects adjusted earnings in a range of $7.95 to $8.05 per share and adjusted operational earnings in a range of $7.95 to $8.05 per share.

The company previously expected adjusted earnings in the range of $7.75 to $7.95 per share and adjusted operational earnings in the range of $7.85 to $8.05 per share.

Additionally, the company now projects reported sales between $81.2 billion and $82.0 billion, operational sales between $82.0 billion and $82.8 billion and adjusted operational sales growth of 0.5 to 1.5 percent.

Earlier, the company forecast reported sales between $79.9 billion and $81.4 billion, operational sales between $81.0 billion and $82.5 billion and adjusted operational sales change between a decline of 0.8 percent and a growth of 1.0 percent.

The Street is looking for earnings of $7.89 per share on a revenue decline of 1.6 percent to $80.75 billion for the year.

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