Johnson & Johnson 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.
Raises Full-Year Profit Forecast
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.