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How Johnson & Johnson’s Medical Devices Business Performed in 3Q17

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Medical devices revenue trends

In 3Q17, Johnson & Johnson’s (JNJ) medical devices business generated revenues of $6.6 billion, which was ~7% higher YoY (year-over-year) and 2% lower QoQ (quarter-over-quarter).

In 3Q17, in US and international markets, JNJ’s medical devices generated revenues of $3.2 billion and $3.4 billion, respectively, compared with $3.0 billion and $3.1 billion in 3Q16, representing a 4.6% and 8.6% rise, respectively, YoY.

The medical devices business reported revenues of $19.6 billion for the first nine months (ended September) of 2017, compared with $18.7 billion during the same period of 2016.

Cardiovascular medical devices

In 3Q17, JNJ’s cardiovascular medical devices generated revenues of $506 million, which reflected a ~12% rise on YoY basis and 3% fall QoQ. In 3Q17, in the US and in international markets, cardiovascular devices generated revenues of $261 million and $245 million, respectively, compared with $235 million and $216 million in 3Q16.

JNJ’s cardiovascular devices reported revenues of $1.5 billion for the first nine months of 2017, compared with $1.4 billion during the same period of 2016.

Diabetes care medical devices

In 3Q17, JNJ’s diabetes care medical devices generated revenues of $405 million, which reflected a ~5% YoY fall and a 4% QoQ fall. In 3Q17, in the US and in international markets, diabetes care medical devices generated $168 million and $237 million in revenues, respectively, compared with $191 million and $236 million in 3Q16.

JNJ’s diabetes care medical devices reported revenues of $1.2 billion during the first nine months of 2017, compared with $1.3 billion during the corresponding period of 2016.

JNJ’s peers include Medtronic (MDT), Baxter (BAX), and Zimmer Holding (ZMH). Medtronic reported fiscal 2Q18 revenues of $7.0 billion. Baxter and Zimmer reported revenues of $2.7 billion and $1.8 billion, respectively, in 3Q17.

Notably, the Guggenheim S&P 500 Top 50 ETF (XLG) invests ~3.4% of its total portfolio holdings in JNJ.

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