J&J rises on Wall St. beat, lifts forecast
Johnson & Johnson (JNJ) boosted its sales and profit outlook for the year after reporting second-quarter financial results that beat Wall Street expectations, aided by growth in its pharmaceuticals business.
The company raised its full-year sales guidance of $71.5 billion to $72.2 billion, up from the sweetened forecast of $71.2 billion to $71.9 billion the company issued in April. It also increased its adjusted 2016 earnings guidance to a range of $6.63 to $6.73 per share, up from $6.53 to $6.68.
The company's shares closed 1.7% higher at $125.25.
Worldwide pharmaceutical sales rose 8.9% from the same period last year to $8.7 billion, Johnson & Johnsaid said. CEO and Chairman Alex Gorsky credited the increase in part to "continued success of new products" and "significant clinical milestones" in the company's drug pipeline.
The pharmaceutical growth included rising sales of Imbruvica, a once-daily oral therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer.
Johnson & Johnson also said its results were aided by a drop in negative worldwide currency impact to 2.7% from the 6.6% in the first quarter.
The New Brunswick, N.J.-based maker of pharmaceuticals, medical devices and personal care products said sales for the three-month period rose 3.9% to $18.5 billion, 3.9% from the year-ago quarter, surpassing the nearly $18 billion consensus forecast of financial analysts surveyed by S&P Global Market Intelligence. Global consumer sales declined 1.8% to $3.4 billion.
Net income fell to $3.9 billion, or $1.43 per share, from $4.5 billion or $1.61 per share in the same period last year.
On an adjusted basis, the company reported profit of $1.74 per share. Analysts expected $1.68 per share.
The results were announced one day after the company finalized its $3.3 billion acquisition of beauty products company Vogue International. The acquisition vaulted Johnson & Johnson from 8th place to 4th place in hair care market share, Gorsky said..
The company's new forecasts don't include any expectation Johnson & Johnson could face an equivalent and less expensive competitor for Remicade, the company's top-selling arthritis drug, in 2016. CFO Dominic Caruso said the company would defend its patent for the medication, which is set to expire in 2018.
Jeffrey Loo, an analyst for S&P Global Market Intelligence, raised his price target on Johnson & Johnson shares by $10, to $143.
Follow Paste BN reporter Kevin McCoy on Twitter: @kmccoynyc