Johnson & Johnson quarterly earnings fall to US$3.6b

Business | 16 Jul 2020 10:11 pm

Johnson & Johnson had a surprisingly strong second quarter and bumped up its 2020 forecast even after the coronavirus contributed to a 40 percent drop in U.S. medical device sales.

Growing pharmaceutical sales, also in the U.S., helped the world’s biggest health products maker counter damage from the pandemic, which forced patients to delay surgeries.

J&J on Thursday said it expects 2020 earnings of US$7.75 to US$7.95 per share, and sales of between US$81 billion and US$82.5 billion. That comes a few months after the company surprised investors by cutting its profit forecast for the year by about 15 percent and slashing its sales forecast because of the pandemic.

J&J’s quarterly net income fell by 35 percent to US$3.63 billion, while adjusted earnings totaled US$1.67 per share. Total revenue also fell by 11 percent to US$18.34 billion.

Industry analysts had expected J&J to take a bigger hit from the pandemic, having projected per-share earnings of US$1.49, and US$17.61 billion in revenue.

The company’s pharmaceutical sales grew by nearly 6 percent in the U.S. and 2 percent globally. That segment was helped by the immune disorder drug Stelara and cancer drugs Darzalex and Imbruvica.

Worldwide revenue from consumer health products fell by 7 percent to US$3.3 billion in the quarter. The company said sales of Tylenol and Listerine mouthwash helped balance a hit from the pandemic on health and beauty products.

J&J also saw medical device revenue fall in the first quarter. That segment is more vulnerable to economic downturns because many of its products are for elective surgery, such as hip and knee replacements and cataract surgery.-AP

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