Pharma delivers another beat & raise quarter for Johnson & Johnson

Johnson & Johnson (NYSE:JNJ) managed to top expectations with its 2nd-quarter results today, largely on the strength of its pharmaceuticals business, but its medical device division once again failed to meet the forecast.

New Brunswick, N.J.-based Johnson & Johnson posted profits of $4.33 billion, or $1.51 per share, on sales of $19.50 billion for the 3 months ended June 30, for bottom-line growth of 12.9% on sales growth of 9.1%.

Adjusted to exclude 1-time items, earnings per share reached $1.66, a full 11¢ above expectations on Wall Street. The strong results prompted J&J to boost its earnings guidance for 2014 to $5.85 to $5.92 per share, up from $5.80 to $5.90.

"Our strong 2nd-quarter results reflect the continued success of our new product launches and the progress we have made in achieving our near-term priorities," chairman & CEO Alex Gorsky said in prepared remarks. "Significant advancements are being made in the treatment options and access to care for patients and customers around the world. Our diversified business model, focus on long-term growth drivers and talented colleagues position us well in this evolving and dynamic global health care market."

The pharmaceuticals business delivered 21.1% overall growth, rising to $8.52 billion, with U.S. pharma sales surging 36.6% to $4.61 billion. But Johnson & Johnson’s medical device & diagnostics business saw meager revenue growth of 0.7%, to $7.24 billion overall, with U.S. MD&D sales falling -1.4% to $3.20 billion.

"Primary contributors to operational growth were hip and trauma products in the orthopaedics business, Biosense Webster’s electrophysiology products in the cardiovascular care business, and sales of energy products in the specialty surgery business," the company said.

J&J’s cardiovascular business delivered sales growth of 7.2%, rising to $567 million for the quarter. The orthopedics unit reported sales of $2.47 billion, up 3.5% worldwide; the specialty surgery business logged overall sales of $905 million, up 1.7%. Johnson & Johnson’s surgical care division saw revenues of $1.58 billion, off -0.8%.

In the U.S., cardiovascular sales rose 4.9% to $214 million. Orthopedics sales in the U.S. were 1.29 billion, up 1.6%, while specialty surgery revenues slid -0.5% to $424 million during the 2nd quarter. U.S. surgical care sales dropped -4.5% to $551 million, Johnson & Johnson said.

JNJ shares were down 1.9% to $103.40 apiece as of about 10 a.m. today.