JNJ

EARNINGS-J&J raises forecast after quarterly profit beats estimates

Credit: REUTERS/BRENDAN MCDERMID

Adds details on sales of treatments, forecast

July 16 (Reuters) - Johnson & Johnson JNJ.N raised its full-year profit forecast and beat analysts' estimates for quarterly earnings on Thursday as strength in its pharmaceuticals unit cushioned a steep fall in sales of its medical devices due to the COVID-19 pandemic.

Sales in the healthcare conglomerate's medical devices unit tumbled 33.9% in the second quarter as hospitals and patients delayed non-urgent procedures like hip and knee replacements.

But its large pharmaceuticals unit offset the slump, rising 2.1%, helped by strong demand for Stelara, used to treat Crohn's disease and plaque psoriasis, and cancer drug Darzalex.

The company raised its full-year adjusted profit forecast to $7.75 to $7.95 per share, from its prior estimate of $7.50 to $7.90 per share.

J&J's total sales fell 10.8% to $18.34 billion, but beat estimates of $17.61 billion, according to IBES data from Refinitiv.

The company, which is set to begin human trials of its experimental coronavirus vaccine this month, reported net earnings of $3.63 billion, or $1.36 per share, down from $5.61 billion, or $2.08 per share, a year earlier.

Excluding items, J&J earned $1.67 per share, beating the average analyst estimate of $1.49 per share.

(Reporting by Manas Mishra in Bengaluru; Editing by Sriraj Kalluvila)

((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manasmishra24; within U.S. +1 646 223 8780, outside U.S. +91 806749 2709;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.