Shares of Johnson & Johnson (NYSE:JNJ) could spike today after the healthcare giant reported surging 2nd-quarter profits, beating Wall Street’s forecast by 9¢, and raised its earnings outlook for the rest of the year.
New Brunswick, N.J.-based Johnson & Johnson posted Q2 profits of $3.83 billion, or $1.33 per share, on sales of $17.88 billion for the 3 months ended June 30, for sales growth of 8.5% and a bottom-line surge of more than 172%.
"Our strong second-quarter results reflect the progress we’ve made against our near-term priorities of delivering on our financial commitments, restoring a reliable supply of over-the-counter products to consumers, continuing the successful integration of Synthes and building on the momentum in our pharmaceutical business," chairman & CEO Alex Gorsky said in prepared remarks. "Our talented colleagues at Johnson & Johnson continue to bring meaningful innovations to patients and consumers around the world and have positioned us well to deliver sustainable growth."
Johnson & Johnson said it now expects full-year adjusted earnings per share to be between $5.40 and $5.47, up from prior guidance for adjusted EPS of $5.35-$5.45.
The earnings surge was driven by lower integration costs for JNJ’s blockbuster, $21.3 billion acquisition of Synthes, lower legal expenses and reduced R&D spend, according to a press release.
Sales for the company’s medical device and diagnostics segment were $7.19 billion, up 9.6% compared with the same period last year. U.S. sales for the division were $3.24 billion, up 9.8%, and overseas sales grew 9.4% to $3.95 billion, according to the release.
Johnson & Johnson said those increases were largely due to the Synthes buyout; absent those revenues, worldwide operational sales growth was only 0.5%, according to the company.
