John­son & John­son tops Q2 profit fore­casts

Kuwait Times - - BUSINESS -

Higher spend­ing on mar­ket­ing, pro­duc­tion and re­search pushed down John­son & John­son’s sec­ond-quar­ter profit 4.3 per­cent de­spite slightly higher sales for the health care prod­ucts gi­ant. But with its big­gest ac­qui­si­tion ever just com­pleted, bring­ing it mul­ti­ple new pre­scrip­tion medicines to sell, J&J raised its fi­nan­cial fore­casts for the year.

The maker of blood thin­ner Xarelto, Tylenol and other pain re­liev­ers, and med­i­cal de­vices yes­ter­day re­ported net in­come of $3.83 bil­lion, or $1.40 per share, down from $4 bil­lion, or $1.43 per share, a year ear­lier. Ad­justed re­sults, ex­clud­ing one-time charges, amounted to $5 bil­lion, or $1.83 per share. That topped Wall Street per-share ex­pec­ta­tions of $1.79, ac­cord­ing to a sur­vey by Zacks In­vest­ment Re­search.

Rev­enue was $18.84 bil­lion, just shy of an­a­lyst ex­pec­ta­tions for $18.89 bil­lion.

“We are op­ti­mistic that the in­vest­ments we are mak­ing will ac­cel­er­ate our sales growth in the sec­ond half of this year,” CEO Alex Gorsky said in a state­ment. “The Acte­lion ac­qui­si­tion es­tab­lishes a new ther­a­peu­tic area as well as an­other engine for growth.” J&J, based in New Brunswick, New Jer­sey, closed that $30 bil­lion deal in June, gain­ing Acte­lion’s three drugs for treat­ing high blood pres­sure in the lungs, other mar­keted prod­ucts and some ex­per­i­men­tal drugs in late-stage test­ing.

The com­pany’s pre­scrip­tion drugs busi­ness, its largest seg­ment, saw sales dip 0.2 per­cent to $8.64 bil­lion, while sales of con­sumer health prod­ucts such as John­son’s baby care items edged up 1.7 per­cent to $3.48 bil­lion. Mean­while, sales of med­i­cal de­vices and di­ag­nos­tic prod­ucts climbed 4.9 per­cent to $6.73 bil­lion, in­di­cat­ing the re­struc­tur­ing be­gun a year ago is turn­ing around prob­lems in the seg­ment.

J&J said it now ex­pects full-year earn­ings in the range of $7.12 to $7.22 per share, up from it April fore­cast of $7 to $7.15 per share. It fore­cast rev­enue in the range of $75.8 bil­lion to $76.1 bil­lion, up from $75.4 bil­lion to $76.1 bil­lion. —AP

In this Sept 13, 2016 file photo, a se­lec­tion of John­son & John­son brand first aid prod­ucts are shown in Surf­side, Fla. John­son & John­son re­ported fi­nan­cial earn­ings yes­ter­day.—AP

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