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Higher Pharma Unit Sale Helps Johnson & Johnson Beat Expectations In Second Quarter


07/17/2018


Higher Pharma Unit Sale Helps Johnson & Johnson Beat Expectations In Second Quarter
Higher sales of rare-disease treatments derived by the company following the acquisition of Actelion and cancer drugs Zytiga and Darzalex propelled the quarterly profit and revenue of Johnson & Johnson to leave behind the market expectations as it reported its results on Tuesday.
 
There was an increase in sale throughout the three main business units of the company. there was an almost 20 per cent increase in the sale in its pharmaceutical business to touch $10.35 billion which made up nearly 50 per cento the total sale of the company globally for the second quarter.
 
There was a certain degree of volatility in the shares of the company as they recovered from an initial fall and increased by 1.4 per cent to touch $126.46.
 
The company also announced that it would contest and appeal against a Missouri jury decision which ordered the company to pay in damages about $4.69 billion – a record in itself, to 22 women who had claimed that their usage of J&J talc products had resulted in them developing cancer.
 
There are another 9000 cases pending against the company by users of talc-based products where the users have alleged that the use had resulted in them developing ovarian cancer and mesothelioma, a rare cancer linked to asbestos. The alleged talc-based products included the baby powder marketed by the company.
 
Tuesday’s financial report by the company showed that J&J had increased its net earnings to $3.95 billion, or $1.45 per share during the second quarter comparted to $3.83 billion, or $1.40 per share in the same period a year before.
 
In terms of the profit generated by the company, it beat analysts’ expectations of $2.07 per share and reported a profit of $2.10 per share.
 
This was because the company beat analysts’ estimates of $20.39 billion for its total sales which increased to touch $20.83 billion from $18.84 billion in the same period a year ago.
 
There was a 11.8 per cent in the reported quarter in the international revenue for J&J which accounted for almost half of the total sale revenues of the company.
 
Compared to a prior estimate of $81.0 billion to $81.8 billion, the company now is expecting its full-year sales to be between $80.5 billion and $81.3 billion, J&J said. A strengthening dollar was blamed by the company for the drop in estimates.
 
According to Thomson Reuters I/B/E/S, analysts had expected full-year profit of $8.12 per share and sales of $81.47 billion.
 
According to the latest estimates of the company, the adjusted earnings is expected to be between $8.07 to $8.17 per share. The company had earlier forecast the figure between $8.00-$8.20 per share.
 
(Source:www.reuters.com)


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