Johnson & Johnson q2 2019 earnings

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Johnson’s baby powder on a supermarket shelf in Alhambra, California.

Frederick J. Brown | AFP | Getty Images

Johnson & Johnson reported quarterly earnings and revenue that beat analysts’ expectations.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.58, adjusted, vs. $2.46 expected
  • Revenue: $20.56 billion vs. $20.29 billion expected

Johnson & Johnson reported second-quarter net income of $5.61 billion, or $2.08 per share, a 42% increase from the $3.95 billion, or $1.45 per share, it posted a year earlier. Excluding an intangible amortization expense and special items, J&J earned $2.58 per share, beating the $2.46 per share expected by analysts surveyed by Refinitiv.

Net sales dipped to $20.56 billion, a 1.3% decrease from the year-ago quarter, yet still above analysts’ expectations of $20.29 billion.

“We delivered solid second-quarter underlying sales growth and strong earnings growth that enables us to make investments in innovation to accelerate performance in each of our businesses,” J&J CEO Alex Gorsky said in a statement. 

J&J reiterated its full-year earnings forecast of adjusted earnings in the range of $8.53 to $8.63 per share. The company boosted its sales forecast to between $80.8 billion and $81.6 billion, up from the previously guided $80.4 billion to $81.2 billion. 

Shares of J&J rose 1% in premarket trading. 

J&J makes everything from Acuvue contacts to cancer drugs like Zytiga to Aveeno lotion. Prescription drug sales have fueled J&J’s growth in recent years, accounting for half of the company’s revenue.

The company is trying to balance declining sales from some of its top drugs, like Zytiga, while introducing new ones, like Spravato. Prostate cancer treatment Zytiga lost patent protection last fall and now faces competition from a handful of generic drugs. Meantime, J&J won approval from the U.S. Food and Drug Administration in the spring for Spravato, a ketamine-like nasal spray for treatment-resistant depression.

J&J also faces thousands of lawsuits claiming its talc-based baby powder caused ovarian cancer and mesothelioma, threatening the company’s family-friendly image. The company has fought the charges and insists its baby powder is safe.

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