Johnson & Johnson (NYSE:JNJ) reported better-than-expected profits for the first quarter driven by strong sales of its cancer drugs, but shares of the pharma giant traded lower as sales from its medical devices division did not rise as much as expected.
For Q1, the company reported that its adjusted earnings per share (EPS) increased by 12.4% to $2.71, topping estimates of $2.64, while revenue of $21.38 billion was in line with expectations.
However, sales from medical devices of $7.82 billion were shy of Wall Street estimates of about $7.9 billion, per FactSet.
Sales of its blockbuster psoriasis drug, Stelara, and cancer drug Carvykti were also lower than expected.
Stifel analysts said "China-related issues seemed to play a restraining role" in some of the underperformances.
On the plus side, overall oncology sales increased 12.6% from the year-ago quarter, with cancer treatment Darzalex notably jumping 19% to $2.69 billion in sales.
"Johnson & Johnson (NYSE:JNJ)’s solid first quarter performance reflects our sharpened focus and the progress in our portfolio and pipeline," J&J CEO Joaquin Duato commented.
"Our impact across the full spectrum of healthcare is unique in our industry, and the milestones achieved this quarter reinforce our position as an innovation powerhouse."
Shares of J&J were down 1.7% at about $145 mid-morning on Tuesday.