Johnson & Johnson (NYSE:JNJ) shares were up before hours on second-quarter results that came in ahead of the consensus forecast.
The New Brunswick, New Jersey-based company posted profits of $4.8 billion, or $1.80 per share, on sales of $24 billion for the quarter ended June 2022, for a 23.3% bottom-line slide on sales growth of 3%.
Adjusted to exclude one-time items, earnings per share were $2.59, 2¢ ahead of Wall Street, where analysts were looking for sales of $23.8 billion.
Johnson & Johnson MedTech, formerly the company’s medical devices segment, experienced a 1.1% decrease in sales, pulling in nearly $6.9 billion in revenues for the three-month period. The company’s adjusted operational sales grew 3.4%, driven primarily by contact lenses and surgical vision products, as well as electrophysiology products, according to a news release.
Growth in the MedTech segment was “partially offset” by COVID-19-related mobility restrictions in certain regions.
The company’s consumer health segment also saw a sales dip (1.3%), while the pharmaceutical segment brought in nearly double the MedTech business’ revenues at $13.3 billion. That represented year-over-year growth of 6.7%, driven by a number of therapeutics, including Darzalex, Stelara, Erleada and Tremfya. The company’s Janssen COVID-19 vaccine also contributed to growth.
“Our solid second quarter results across Johnson & Johnson reflect the strength and resilience of our Company’s market leadership in the midst of macroeconomic challenges,” CEO Joaquin Duato said in the release. “I am continually energized by the focus and passion of my Johnson & Johnson colleagues and their dedication toward delivering transformative healthcare solutions to patients and consumers around the world.”
The company said it now expects to log adjusted EPS of between $10 and $10.10, compared with a range of $10.15 to $10.35 previously. The company reduced its prior sales guidance for between $93.3 billion and $94.3 billion, having previously set expectations for between $94.8 billion and $95.8 billion.
Truist analysts described J&J’s results as “less bad than feared.” They noted that J&J management said inflationary pressures are expected to persist into next year, but the pressures appear to be stabilizing both for supply chain and costs.
JNJ shares were down slightly at $172.52 apiece by midday trading today. MassDevice’s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up 1%.