Johnson & Johnson announced third‑quarter results that slightly exceeded Wall Street expectations, highlighting robust demand for its immune‑disease therapy Tremfya while noting challenges in its medical‑device segment.
Financial highlights
The company posted revenue of $25.4 billion, above the LSEG consensus of $25.28 billion. Adjusted earnings came in at $2.59 per share, beating the forecast of $2.54.
Pharmaceutical sales rose 7.7% to $16.76 billion, while the medical‑technology division grew only 2.5% to $8.6 billion, with sales outside the United States essentially flat.
Impact of global events
Chief Financial Officer Joe Wolk told Reuters that the Middle East conflict, austerity measures in Europe and pricing pressures in China continue to weigh on international results. He noted that soaring fuel costs have not yet affected the company’s cost base but have reduced demand in the region.
“These are countries that still value premium healthcare systems – think Kuwait, UAE, Saudi Arabia – but their budgets are now being redirected toward defense,” Wolk said.
Product performance
Tremfya sales surged 68% to $2.4 billion, surpassing analyst estimates of about $2.19 billion. The drug is increasingly offsetting lost revenue from Stelara, whose sales fell 54% to $716 million amid generic competition.
Blood‑cancer treatment Darzalex grew roughly 16% to $4.24 billion, though it missed the $4.4 billion expectation. Sales of the Abiomed Impella heart‑pump system remained sluggish after a UK study raised questions about its use in high‑risk coronary procedures.
Strategic moves
J&J reaffirmed its plan to spin off its orthopedics unit, focusing on hips and knees, according to Wolk’s comments to the Wall Street Journal.
The company raised its full‑year sales outlook to about $101.2 billion and lifted the midpoint of its adjusted earnings forecast to $11.10 per share, up from $11.04.
Market reaction
Despite the earnings beat, J&J shares fell more than 2% in pre‑market trading. The stock closed at $263.73 on Monday, up 27% year‑to‑date, outperforming the broader market and most healthcare peers.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
