Johnson & Johnson (NYSE:JNJ) shares dipped today despite first-quarter results that topped the consensus forecast.
The New Brunswick, N.J.-based company posted profits of $5.8 billion, or $2.17 per share, on sales of $20.7 billion for the three months ended March 29, 2020, for a 54.6% bottom-line gain on sales growth of 3.3%.
Adjusted to exclude one-time items, earnings per share were $2.30, 27¢ ahead of Wall Street, where analysts were looking for sales of $19.2 billion.
The company’s pharmaceutical business experienced an 8.7% sales increase year-over-year, totaling $11.1 billion, highlighting a positive 1% impact from the COVID-19 pandemic.
On the other side, Johnson & Johnson’s medical devices segment recorded sales of $5.9 billion, an 8.2% decrease year-over-year. The company estimates a negative 7.5%-8% impact on its sales related to COVID-19 and the reduction of several procedures.
Johnson & Johnson did not offer financial guidance for the fiscal year, with estimates potentially heavily impacted by COVID-19. The company has already rescheduled or delayed certain trials as a result of the pandemic.
“While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended March 29, 2020, the company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the company’s consolidated financial statements in future reporting periods,” the company said in its SEC filing.
JNJ shares were down -0.7% at $149.16 per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was marginally down from 83.17 to 83.15.
