Johnson & Johnson (NYSE:JNJ) shares ticked down despite third-quarter results that came in well ahead of the consensus forecast.
News of the company’s COVID-19 vaccine candidate trial being put on pause after a patient illness likely played its part, as shares of JNJ were trading down -2.1% at $148.68 per share in midday trading today.
The New Brunswick, N.J.-based company posted profits of $3.6 billion, or $1.33 per share, on sales of $21.1 billion for the three months ended Sept. 30, for a more than doubled bottom-line on sales growth of 1.7% year-over-year.
Adjusted to exclude one-time items, earnings per share were $2.20, 22¢ ahead of Wall Street, where analysts were looking for sales of $20.2 billion.
Johnson & Johnson’s medical device business segment declined in sales by -3.3% due to the negative impact of the COVID-19 pandemic and the deferral of medical procedures. However, it demonstrates recovery over the second quarter, the company noted.
“Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in medical devices, growth in consumer health, and continued strength in pharmaceuticals,” J&J chairman & CEO Alex Gorsky said in a news release. “I am proud of the relentless passion and credo-led commitment to patients and customers that our colleagues around the world continue to demonstrate as we boldly fight the COVID-19 pandemic. Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety and efficacy; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need.
“This resilient mindset, combined with our strategic capabilities and execution excellence, increase our optimism for continued recovery in 2020 and strong momentum entering into 2021.”
Johnson & Johnson said it is not offering guidance for the full year with the uncertainties caused by the pandemic but said the pandemic is likely to bring its adjusted EPS from the range of $7.95 to $8.05 to about $7.75 to $7.95.
