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How Johnson & Johnson’s Medical Device Business Stands Now

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Oct. 23 2018, Updated 6:33 a.m. ET

Revenue trends

Johnson & Johnson’s (JNJ) Medical Devices business consists of Diabetes Care, Interventional Solutions, Orthopedics, Surgery, and Vision Care. Johnson & Johnson released its third-quarter results on October 16.

Johnson & Johnson’s net revenues from its Medical Devices business remained flat in the third quarter YoY (year-over-year). Johnson & Johnson’s Medical Devices segment’s net revenues reported ~3.6% year-over-year (or YoY) growth in the first nine months of 2018 compared to the same period in 2017.

Johnson & Johnson’s Medical Devices segment generated net revenues of $6.6 billion in the third quarter, reflecting ~0.2% YoY growth. In the third quarter, JNJ’s Medical Devices business reported ~1.7% YoY operational growth.

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Geographical revenue trends

In its US and international markets, Johnson & Johnson’s (JNJ) Medical Devices segment generated third-quarter net revenues of $3.2 billion and $3.4 billion, respectively, reflecting ~0.3% YoY growth and an ~0.6% YoY decline. In the US and international markets, Johnson & Johnson’s Medical Devices business reported ~0.3% and 3.0% YoY operational growth, respectively, in the third quarter.

Johnson & Johnson’s Medical Devices segment’s net revenues totaled $20.3 billion over the first nine months of 2018 compared to $19.6 billion in the first nine months of 2017, reflecting ~3.6% YoY growth. In the US and international markets, its Medical Devices segment generated revenues of $9.6 billion and $10.7 billion, respectively, which reflected ~1.2% and ~5.9% YoY growth.

Peer comparisons

Among Johnson & Johnson’s (JNJ) peers in the medical devices market, Thermo Fisher Scientific (TMO) and Danaher (DHR) reported second-quarter revenues of $6.1 billion and $4.9 billion, respectively, reflecting ~21.8% and ~7.18% YoY growth.

Wall Street analysts expect Thermo Fisher Scientific (TMO) and Danaher (DHR) to generate third-quarter revenues of $5.7 billion and $5.3 billion, respectively, representing ~11.5% and ~4.64% YoY growth.

Johnson & Johnson, Thermo Fisher Scientific, and Danaher (DHR) comprise ~1.58%, ~0.39%, and ~0.26%, respectively, of the SPDR S&P 500 ETF’s (SPY) total portfolio holdings.

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