Johnson as well as also Johnson Q3 earnings 2018

Strong sales of cancer drugs as well as also a turnaround in its baby care business helped Johnson & Johnson’s third-quarter earnings as well as also revenue outpace estimates.

Here’s how Johnson & Johnson reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.05, adjusted, vs. $2.03 expected
  • Revenue: $20.3 billion vs. $20.05 billion expected

J&J reported third-quarter net income of $3.93 billion, or $1.44 per share, up via $3.76 billion, or $1.37 per share a year earlier. Excluding items, J&J earned $2.05 per share, above the $2.03 expected by analysts surveyed by Refinitiv.

Net sales rose 3.6 percent to $20.35 billion, surpassing expectations of $20.05 billion.

J&J’s pharmaceuticals segment posted $10.35 billion in revenue, beating analysts’ estimates of $10.02 billion. Medical device sales totaled $6.59 billion, missing expectations of $6.64 billion. The consumer business reported $3.42 billion in sales, above the $3.34 billion Wall Street anticipated.

Shares of J&J rose about 2 percent on Tuesday. They’re right now down about 2 percent This specific year.

“the idea was a strong quarter across all three of our segments of the business,” J&J’s chief financial officer Joe Wolk said Tuesday in an interview with CNBC’s “Squawk Box.”

J&J tweaked its full-year forecast to between $8.13 as well as also $8.18 per share, up slightly via the previously guided $8.07 as well as also $8.17 per share. Wall Street anticipates full-year earnings of $8.15 per share, according to Refinitiv. The company predicts revenue inside the range of $81.0 billion to $81.4 billion. Analysts had expected $81.21 billion.

inside the quarter, worldwide sales of cancer drug Darzalex reached $498 million, missing analysts’ estimates of $538.7 million via Street Account.

Sales of Stelara, an immunotherapy treatment for plaque psoriasis, reached $1.31 billion, exceeding analysts’ expectations of $911 million.

Earlier This specific month, J&J inked an agreement with Arrowhead Pharmaceuticals to develop its gene-silencing Hepatitis B treatment as well as also take a minority stake inside the company. The deal could potentially be worth more than $3.7 billion.

“Pharmaceuticals, I just can’t say enough about which division for us,” Wolk said. “the idea continues to just generate brand new products in a profound way which’s transformational to the current state of care, as well as also which’s led the growth of our company for many quarters right now.”

The consumer business’ increase in sales comes, in part, thanks to revamping its iconic baby care line. The companyrelaunched the line in August after losing ground to niche upstart brands as well as also facing a 20 percent sales decline since 2011. inside the quarter, U.S. baby care sales increased 20 percent to $0 million, up via $100 million inside the same time last year.

J&J reformulated its products, cutting the number of ingredients in half, eliminating dyes as well as also sulfates as well as also replacing ingredients like mineral oil with coconut oil, Trisha Bonner, associate director of research & development at J&J Consumer, told CNBC in May. The company also redesigned packaging, adding pumps to many of its products to make the idea easier for parents to use while holding a baby.

“the idea’s much more receptive to the needs of millennial moms as well as also dads in terms of the formulation as well as also packaging,” Wolk said.

-CNBC’s
Meg Tirrell
contributed to This specific report

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