Johnson & Johnson Lifts Full Year Earnings Forecast After Q3 Results Top View

(RTTNews) - Healthcare giant Johnson & Johnson (JNJ) Tuesday reported marginally higher earnings for the third quarter, amid strong performance from several of its newly launched products. Adjusted earnings and revenues topped Wall Street estimates and the company lifted its full year earnings forecast.

Alex Gorsky, CEO, said, "Our third-quarter results reflect the solid, demonstrable results in achieving our near-term priorities while also advancing our longer term strategic growth drivers. Our key products and successful new product launches delivered strong growth.''

Net earnings attributable to the company rose to $2.982 billion from $2.968 billion in the previous year. Earnings per share slid to $1.04 from $1.05.

The latest results included special items of $0.9 billion, primarily related to an increase in the accrual for litigation expenses, in-process research and development expense, and integration and transaction costs related to the acquisition of Synthes, Inc. Last year's net earnings included after-tax special items of about $0.6 billion. Adjusted earnings totaled $1.36 per share, while it amounted to $1.25 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings of $1.32 per share for the quarter. Analysts' estimates typically exclude special items. Sales increased 3.1 percent to $17.575 billion from $17.052 billion in the prior year. Wall Street expected revenues of $17.46 billion.

According to the company, operational results increased sales by 4.7 percent and the negative impact of currency was 1.6 percent. While Domestic sales increased 1.7 percent, International sales climbed 4.2 percent.

U.S. sales advanced 1.7 percent to $7.925 billion while International sales improved 4.2 percent to $9.65 billion. Sales climbed 12.4 percent in Europe and 1 percent in Western Hemisphere, excluding U.S. Worldwide Consumer sales rose 0.8 percent to $3.61 billion, amid good U.S. sales performance from Tylenol and Motrin analgesics, upper respiratory over the counter medicines, Aveeno skin care products and international baby care products.

Worldwide Pharmaceutical sales increased 9.9 percent to $7.04 billion with contribution from schizophrenia treatment Invega Sustenna/Xeplion, as well as Remicade and Simponi used for some inflammatory diseases.

Stelara, a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis, multiple myeloma drug Velcade, HIV medicine Prezista and sales of new products also boosted sales.

New products such as cancer drug Zytiga, anticoagulant Xarelto and diabetes treatment Invokana also performed well during the quarter.

Med Devices & Diagnostics division saw sales fall of 2 percent at $6.93 billion with drops in both U.S. and International businesses.

Further, the company increased its earnings guidance for full-year to $5.44 to $5.49 per share. The forecast issued in July projected earnings per share of $5.40 to $5.47. Analysts expect earnings of $5.46 per share for the year.

JNJ, which closed at $89.80 on Monday, is adding 1.2 percent in pre-market activity.