Pharmaceutical giant Johnson & Johnson (NYSE:JNJ) reported beats in both third-quarter earnings per share and revenue on Tuesday while also raising guidance for the full year as strong consumer, drug and medical device sales bolstered the company's performance and outlook.
The company said third-quarter revenue came in at $20.3 billion, up 3.6% from last year's $19.65 billion and above the consensus of $20.05 billion. Earnings per share was at $2.05, higher than last year's $1.9 and the expected $2.03.
The company also raised its guidance for the full year 2018 EPS by 9.3% to 10% to around $8.13-$8.18 and increased revenue guidance for the year by 5.5%-6% to $81 to $81.4 billion. Its previous guidance was for 2018 revenue of $80.5 to $81.3 billion.
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Alex Gorsky, the chairman and CEO of the company, said in a statement the quarterly performance "reflects continued above-market growth in our pharmaceutical business, accelerating sales momentum in our consumer business and consistent progress in our medical devices business."
Shares of the company were little moved on Tuesday though after the results were released. The stock rose 0.04% to $134, having ended on Monday up 0.06% to $133.95.
Worldwide consumer sales reached $3.4 billion for the third quarter 2018 representing an increase of 1.8% versus the prior year. Domestic sales rosed 6.6%, while international sales fell 1.3%, which reflected an operational increase of 3.7% and a negative currency impact of 5.0%, Johnson & Johnson said in a statement.
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products including Motrin and Tylenol analgesics, Zyrtec for upper respiratory issues and Imodium for digestive health products; beauty goods including Neutrogena among others, and domestic sales of Johnson's baby care products.
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During the quarter, the acquisition of Zarbee's Inc, a leader in naturally-based healthcare products, was completed.
Worldwide pharmaceutical sales of $10.3 billion for the third quarter 2018 represented an increase of 6.7% versus the prior year with an operational increase of 8.2% and a negative impact from currency of 1.5%. Domestic sales increased 4.8%, international sales gained 9.5%, which reflected an operational increase of 13.2% and a negative currency impact of 3.7%.
Worldwide medical devices sales of $6.6 billion for the third quarter 2018 represented a decrease of 0.2% versus the prior year.
Reporting by Rene Pastor; contactable on rene.pastor@proactiveinvestors.com