Shares in Johnson & Johnson (NYSE:JNJ) gained this morning after the healthcare giant beat expectations for its third-quarter sales and earnings and raised its outlook for the rest of the year.
New Brunswick, N.J.-based J&J posted profits of $4.83 billion, or $1.81 per share, on sales of $20.73 billion for the three months ended Sept. 30, amounting to a 22.9% bottom-line gain on sales growth of 1.9% compared with Q3 2018.
Adjusted to exclude one-time items, earnings per share were $2.12, 11¢ ahead of the consensus on Wall Street, where analysts were looking for sales of $20.07 billion.
“Our third-quarter results represent strong performance, driven by competitive underlying growth in pharmaceuticals and medical devices, as well as continued optimization in our consumer business,” chairman & CEO Alex Gorsky said in prepared remarks. “As we look ahead, we remain confident in the strength of our broad-based business model, which is fueled by our disciplined portfolio management, focus on transformational innovation and dedicated employees around the world who position us for success today and well into the future.”
J&J said it now expects to report adjusted EPS of $8.62 to $8.67, compared with $8.53 to $8.63 previously, on sales of $81.8 billion to $82.3 billion, up from prior guidance of $80.8 billion to $81.6 billion.
JNJ shares were up 2.4% to $130.72 apiece today in pre-market trading.
Medical device sales slide on M&A costs
Sales for J&J’s medical device business were off by -3.1% to $6.38 billion on acquisition and divestiture expenses. Excluding those, operational sales were up 5.3%, driven by growth for its electrophysiology, contact lens, international energy product, wound closure and trauma lines, the company said.
