Johnson & Johnson Reports Strong Q3 Results, Stock Rises

Johnson & Johnson’s third-quarter earnings

Johnson & Johnson (JNJ) reported its third-quarter earnings results before the market opened today. It reported sales of $20.3 billion, up ~3.6% YoY (year-over-year). Its sales exceeded analysts’ estimate by ~1.5%. Its adjusted EPS for the third quarter was $2.05, a YoY rise of ~7.9%. It came in ahead of analysts’ estimate of $2.03.

Johnson & Johnson Reports Strong Q3 Results, Stock Rises

JNJ stock is trading higher today on strong third-quarter results. It has risen ~2.1% so far today in afternoon trading.

Operational sales growth

Johnson & Johnson registered an operational sales growth of 5.5% in the third quarter. Its consumer business had sales of $3.4 billion, up ~4.9% YoY on an operational basis. The medical device business showed a weakness during the quarter and reported sales of $6.6 billion, up ~1.7% on an operational basis.

Johnson & Johnson’s Pharmaceutical sales led the company’s strong third-quarter performance, coming in at $10.4 billion, a YoY rise of ~8.2% on an operational basis. Its oncology drugs continued to be its major growth driver. The prostate cancer drug Zytiga, a blood cancer drug Imbruvica, and multiple myeloma drug Darzalex reported sales of $958 million, $705 million, and $498 million, respectively. Those sales represented YoY operational growth of 44.5%, 40.4%, and 60%, respectively. However, Velcade sales continued to be flat in the quarter.

Johnson & Johnson Reports Strong Q3 Results, Stock Rises

Increased fiscal 2018 guidance

Johnson & Johnson also raised its fiscal 2018 guidance today. The company now expects to fiscal 2018 sales of $81 billion–$81.4 billion. That compares to its previous guidance of $80.5 billion–$81.3 billion.

The company expects to fiscal 2018 adjusted EPS of $8.13–$8.18, which compares to its previous guidance of $8.07–$8.17. It estimates an improvement of at least 150 basis points in its adjusted pre-tax operating margin for fiscal 2018.

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