- Johnson & Johnson blows past Wall Street estimates in the third quarter.
- J&J reports £16.27 billion in revenue and £1.70 of adjusted EPS in Q3.
- The U.S. company raised its guidance for annual adjusted EPS & revenue.
Johnson & Johnson (NYSE: JNJ) published its earnings report for the fiscal third quarter on Tuesday that topped analysts’ estimates for earnings and revenue. The company attributed its hawkish performance to increased sales for some drugs, and medical devices that it said were highly in demand in the recent quarter.
Shares of the company opened a little under 2% down on Tuesday and tanked another 0.5% later in the day. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to get you started.
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At the time of writing, the £301.27 billion company that has a price to earnings ratio of 26.06 is 2% up year to date in the stock market.
J&J Q3 financial results versus analysts’ estimates
According to Refinitiv, experts had anticipated the company to print £15.59 billion of revenue in the third quarter. Their estimate for earnings per share was capped at £1.53. In its report on Tuesday, J&J blew past both estimates posting a higher £16.27 billion in revenue and £1.70 of adjusted per-share earnings in Q3.
The American multinational corporation raised its guidance for annual per-share adjusted earnings of £6.14 to £6.21. For sales, Johnson & Johnson now forecasts £63.31 billion to £63.92 billion this year.
The New Brunswick-based company also highlighted in its report on Tuesday that revenue from its pharmaceutical business came in at £8.80 billion in the fiscal third quarter that represents a 5% annualised growth. J&J is currently working on developing an effective vaccine for COVID-19.
The late-stage trial for its candidate vaccine, however, was recently paused as a participant met with an adverse side effect.
CEO Alex Gorsky’s comments on Tuesday
In a press release, CEO Alex Gorsky said:
“Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety and efficacy; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need.”
In the prior quarter (Q2), Johnson & Johnson reported a massive 35% decline in profit as the Coronavirus pandemic delayed elective surgeries.
Other prominent figures in J&J’s financial report on Tuesday include £2.70 billion of revenue from its consumer unit, up 1.3% versus the comparable quarter of last year. Revenue from medical device segment saw a 1.7% year over year increase in the third quarter to £4.71 billion.