J&J beats Q3 profit views, hikes 2020 forecast
Johnson & Johnson boosted revenue slightly and doubled its third-quarter profit, mainly due to a $4 billion charge for litigation costs in the yearago quarter. The health care giant blew past Wall Street expectations and raised its financial forecast for the year.
Meanwhile, the New Brunswick, New Jersey-based company disclosed late Monday that it had to temporarily pause its huge, latestage study of a potential COVID-19 vaccine “due to an unexplained illness in a study participant.” Such pauses are not unusual in big studies, and it’s unknown whether the participant – one of 60,000 planned for the global study got– J&J’s shot or a placebo.
The world’s biggest maker of health care products on Tuesday reported net income of $3.55 billion, or $1.33 per share, up 103% from $1.75 billion, or 66 cents per share, in 2019’s third quarter. Excluding one-time gains and expenses, adjusted net income was $5.87 billion, or $2.20 per share, up from $5.67 billion, or or $2.12 per share, a year earlier. Analysts surveyed by Zacks Investment Research were expecting $1.99 per share.
Johnson & Johnson posted revenue of $21.08 billion in the quarter. Analysts expected $20.53 billion. Despite the strong results, shares were down $2.09, or 1.4%, to $149.75 in premarket trading, likely a reaction to news of the vaccine study pause.
Amid the COVID-19 pandemic, J&J still managed to boost sales of its prescription drugs 5% to $11.42 billion, just over half its entire revenue. (AP)