Johnson & Johnson Q3 Profit Tops Estimates; Raises FY16 Adj. EPS Guidance

(RTTNews) - Johnson & Johnson (JNJ) reported third-quarter net earnings of $4.3 billion or $1.53 per share compared to $3.4 billion or $1.20 per share, prior year. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.7 billion and adjusted earnings per share were $1.68, representing increases of 12.2% and 12.8%, respectively, as compared to the same period in 2015. On an operational basis, adjusted earnings per share also increased 12.8%. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $1.65 for the quarter. Analysts' estimates typically exclude special items.

Third-quarter sales were $17.82 billion, an increase of 4.2% compared to the third quarter of 2015. Operational sales results increased 4.3% and the negative impact of currency was 0.1%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 5.9%. Analysts expected revenue of $17.74 billion for the quarter.

"Our third-quarter results reflect the success of our new product launches and the strength of our core businesses, driven by strong growth in our Pharmaceuticals business. With a number of regulatory approvals, several new drug application submissions and new breakthrough therapy designations from the FDA, we are increasingly confident in our pipeline expectation of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1 billion," said Alex Gorsky, CEO.

Johnson & Johnson maintained its sales guidance for the full-year 2016 of $71.5 billion to $72.2 billion. The company increased its adjusted earnings guidance for full-year 2016 to $6.68 - $6.73 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $6.69 on revenue of $72.16 billion.