Subscribe Login
A-Brands

J&J Beats Profit Estimates But Cuts Forecast On Coronavirus Uncertainty

Johnson & Johnson beat analysts' estimates for first-quarter profit on higher sales of its cancer drugs and consumer products including Tylenol, while slashing its full-year forecast due to the coronavirus shutdowns.

Shares of the company, which raised its dividend by 6.3% to $1.01 per share, rose 3% to $144 in trading before the bell.

The company now expects 2020 adjusted earnings per share of $7.50 to $7.90, compared with its prior estimate of $8.95 to $9.10.

Johnson & Johnson is the first major US drugmaker to report earnings since the coronavirus outbreak forced hospitals to postpone elective surgeries and some patients to cancel appointments, hitting demand for medical devices.

Sales in its medical device unit fell 8.2% to $5.93 billion (€5.42 billion) in the quarter.

Consumer Health Unit

However, sales in its consumer health unit jumped 9.2% to $3.63 billion (€3.32 billion), mainly driven by a surge in demand for products such as Tylenol and Motrin as locked-down customers stocked up on basic medications.

Sales in J&J's pharmaceutical unit rose 8.7% to $11.13 billion (€10.17 billion), helped by sales of cancer drugs Darzalex and Imbruvica.

Net earnings rose to $5.80 billion (€5.3 billion), or $2.17 per share, in the first quarter, from $3.75 billion (€3.4 billion), or $1.39 per share, a year earlier.

Excluding items, the maker of Band-Aid and Listerine mouth wash earned $2.30 per share, beating the average analyst estimate of $2, according to IBES data from Refinitiv.

News by Reuters, edited by Donna Ahern, Checkout. Click subscribe to sign up for the Checkout print edition.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Enjoy full access to Checkout Magazine, our weekly email news digest, access to all website and app content, and the latest digital magazine for a full 30 days.
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Enjoy full access to Checkout Magazine, our weekly email news digest, access to all website and app content, and the latest digital magazine for a full 30 days.
Enjoy unlimited digital access for 30 days