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How Did Johnson & Johnson’s Surgical Devices Segment Perform in 3Q17?

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Advanced surgical devices revenue trends

In 3Q17, Johnson & Johnson’s (JNJ) advanced surgical devices generated revenues of $923 million, which is ~4% higher YoY (year-over-year). In 3Q17, in the US and in international markets, advanced surgical devices generated revenues of $398 million and $525 million, respectively, compared with $390 million and $494 million in 3Q16.

JNJ’s advanced surgical devices reported revenues of $2.7 billion for the first nine months of 2017, compared with $2.6 billion in the corresponding period of 2016.

General surgical devices

In 3Q17, JNJ’s general surgical devices generated revenues of $1.1 billion, which was ~45 higher YoY and 1% lower QoQ (quarter-over-quarter). In 3Q17, in the US and in international markets, general surgical devices generated revenues of $430 million and $675 million, respectively, compared with $414 million and $649 million in 3Q16.

JNJ’s general surgical devices reported revenues of $3.29 billion during the first nine months of 2017, compared with $3.26 billion during the corresponding period of 2016.

Speciality medical devices

In 3Q17, JNJ’s specialty medical devices generated revenues of $318 million, which reflected a ~6% YoY fall and a 6% QoQ fall. In 3Q17, in the US and in international markets, JNJ’s specialty medical devices generated $174 million and $144 million in revenues, respectively, compared with $198 million and $139 million in 3Q16.

JNJ’s specialty medical devices reported revenues of $975 million for the first nine months of 2017, compared with $1.0 billion during the corresponding period of 2016.

In 3Q17, JNJ’s surgical devices generated net revenues of $2.3 billion, which is ~3% higher YoY and 2% lower QoQ. JNJ’s surgical devices reported revenues of $7.0 billion for the first nine months of 2017, which is ~1.3% higher YoY.

Johnson & Johnson’s peers in the surgical and medical devices market include Cardinal Health (CAH), Becton, Dickinson and Company (BDX), and Abbott Laboratories (ABT). Cardinal Health reported revenues of $130 billion in fiscal 2017. Becton, Dickinson and Abbott Laboratories reported revenues of $3.0 billion and $6.8 billion, respectively.

Notably, the WisdomTree US Quality Dividend Growth Fund (DGRW) invests ~6.5% of its total portfolio holdings in JNJ.

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