Johnson & Johnson topped Wall Street’s earnings expectations on Tuesday, extending the company’s multiyear streak of delivering better-than-expected results.
Shares of the health-products giant JNJ, +1.10% gained 2.2% after it reported profit and revenue in the first three months of 2019 that beat analysts’ estimates on FactSet. J&J also raised its full-year outlook for sales growth, providing an added lift for bullish investors.
Net income fell to $3.75 billion, or $1.39 a share, from $4.37 billion, or $1.60 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share, or EPS, rose to $2.10 from $2.06 a year ago, compared with the FactSet estimate of $2.04.
Sales increased 0.1% to $20.02 billion, above the FactSet consensus of $19.61 billion. Within its business segments, pharmaceutical sales rose 4.1% to $10.24 billion, above the consensus of $9.81 billion, and medical devices sales slipped 1.0% to $6.46 billion but beat expectations of $6.34 billion. Consumer sales fell 2.4% to $3.32 billion, underperforming expectations of $3.40 billion.
For 2019, J&J raised its outlook for sales growth to a range of 2.5% to 3.5% from its previous estimate of between 2.0% and 3.0%. The health products company also tightened its adjusted EPS guidance to a range of $8.53 and $8.63 from its previous estimate of between $8.50 and $8.65.
Here are 5 takeaways from J&J’s earnings results.
A not-too-shabby 2019 after all
In January, J&J said it expected sales growth to slow in 2019, forecasting that generic competition would whittle away $3 to $3.5 billion from the company’s pharmaceutical business. This was in the wake of political pressure around drug pricing, thousands of consumer lawsuits and the loss of the company’s patents for blockbuster anti-inflammatory drug Remicade and Zytiga, a prostate-cancer treatment.
However, J&J’s pharmaceutical unit still managed to soundly beat analysts’ expectations