Johnson & Johnson (NYSE:JNJ) today reported third-quarter results that topped the consensus forecast, with MedTech business sales up more than 2%.
The New Brunswick, New Jersey-based company posted profits of $4.5 billion, or $1.68 per share in the quarter. It pulled in sales of $23.8 billion for the three months ended Sept. 30, 2022. That marked a 21.6% bottom-line gain on sales growth of 1.9%.
Adjusted to exclude one-time items, earnings per share were $2.48. That beat Wall Street expectations by 7¢, while analysts looked for sales of $23.3 billion.
J&J’s MedTech arm also saw rises during the quarter. It posted sales of nearly $6.8 billion for a 2.1% improvement over this time last year. The company attributed the performance to drivers such as electrophysiology products, contact lenses, orthopedic trauma therapies and wound closure products.
Its Pharmaceutical business performed the best with revenues of $13.2 million (up 2.6% on 2021).
“Our third quarter performance demonstrates our continued strength and resilience across all three of our businesses,” said Joaquin Duato, Johnson & Johnson CEO. “Through the ongoing efforts of our teams around the world, we continue to navigate the dynamic macroeconomic environment and remain focused on delivering transformative healthcare solutions.
“Looking ahead, I remain confident in our business and ability to continue advancing our innovative portfolio and pipeline.”
Johnson & Johnson projects sales between $93 billion and $93.5 billion in 2022. That marks a slight dip from July’s guidance for between $93.3 billion and $94.3 billion.
The company also raised the low end of its adjusted EPS guidance but reeled in the high end. It now projects for between $10.02 and $10.07. The company previously expected a range between $10 and $10.10.
More about J&J MedTech’s performance
Truist analysts noted that Johnson & Johnson’s MedTech business saw strong volume recovery late in Q3. The sales strength was most pronounced for interventional solutions/interventional cardio (i.e. cath lab procedures). Orthopedics also saw recovery, but not as much as the company saw with cath lab procedures.
Richard Newitter, David Rescott, Samuel Brodovsky, and Lin Zhang at Truist noted that J&J management still view M&A deals as a key priority for MedTech. In fact, they appear bullish on such deals. But they also added that executives commentary “suggested that volatility in capital markets has created some hesitancy in target companies willingness to sell at these sedated valuations.”
JNJ shares were up slightly at $166.93 apiece in morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up nearly 5%.
