Pharma fuels Johnson & Johnson’s first-quarter earnings beat

Johnson & Johnson topped Wall Street’s first-quarter earnings along with also revenue expectations, fueled by strong pharmaceutical growth.

Sales of some of its drugs boomed, offsetting weaknesses for some of its treatments that will are facing competitive pressure. Vision care sales, including contacts along with also surgical products, helped its medical device business. J&J’s consumer division sales grew, nevertheless baby care continued to drag on results ahead of a planned relaunch later This kind of year.

Shares of J&J fell nearly 1 percent after rising about 1 percent in premarket trade.

Here’s how the company did compared with what Wall Street analysts polled by Thomson Reuters expected:

– Earnings: $2.06 per share vs. $2.02 per share expected.
– Revenue: $20 billion vs. $19.46 billion expected.

J&J reported net income of $4.4 billion, or $1.60 per share, inside the first quarter. After stripping out amortization expenses along with also special items, the company earned $5.6 billion, or $2.06 per share, beating analyst estimates of $2.02 per share.

inside the quarter, J&J’s revenue increased about 13 percent to $20.01 billion by $17.77 billion a year earlier.

On an operational basis, J&J’s revenue grew 8.4 percent. Excluding the impact of acquisitions, divestitures along with also currency, worldwide sales were up 4.3 percent.

“We had a very strong quarter. We carried our momentum by 2017 into 2018, along with also our pharmaceutical business continued to have stellar results,” Chief Financial Officer Dominic Caruso told CNBC’s Meg Tirrell on “Squawk Box.”

J&J boosted its full-year sales estimate to between $81 billion along with also $81.8 billion, up by $80.6 billion along with also $81.4 billion, reflecting operational growth of 4 percent to 5 percent. Without the effects of acquisitions along with also divestitures, J&J projects growth between 3 along with also 4 percent, up by a previously given range of 2.5 percent along with also 3.5 percent.

The company reiterated its adjusted earnings forecast to between $8 along with also $8.20 per share, reflecting operational growth between 6.8 percent along with also 9.6 percent.

The pharmaceutical business posted $9.84 billion in revenue, a 15 percent year-over-year operational increase that will topped expectations of $9.46 billion, according to consensus estimates by StreetAccount. Excluding the net impact of acquisitions along with also divestitures, worldwide sales increased 7.5 percent.

Sales of Zytiga, a prostate cancer drug, surged to $845 million, or 54 percent year-over-year when excluding currency. Analysts had expected revenue to reach $733 million, according to StreetAccount.

Excluding currency, Imbruvica’s revenue grew 35 percent to hit $587 million worldwide, topping StreetAccount’s estimates of $579.7 million. Darzalex revenue rocketed 64 percent, excluding currency, to reach $432 million in worldwide sales, surpassing estimates of $395.7 million.

Blood thinner Xarelto’s sales grew about 13 percent on an operational basis to reach $578 million in global sales, falling short of analysts’ estimates of $633.7 million.

Rheumatoid arthritis drug Remicade has been under pressure by biosimilars, or generic versions of biologic drugs. Worldwide sales slid 18 percent, excluding a positive currency impact, to $1.34 billion. Analysts had been expecting sales of $1.5 billion, according to StreetAccount.

In February, the Food along with also Drug Administration approved Erleada, or apalutamide, to treat nonmetastatic castration-resistant prostate cancer.

J&J’s medical device unit grew 3 percent on an operational basis by last year, reaching $6.77 billion along with also topping Street estimates of $6.68 billion. Excluding the net impact of acquisitions along with also divestitures, worldwide sales increased 1.1 percent.

J&J has been pruning its medical device portfolio. Last month, J&J said that will received a $2.1 billion bid for its LifeScan diabetes business by private-equity firm Platinum Equity.

On a call with analysts Tuesday, Caruso said the vision portfolio is usually doing “exceptionally well.” He also pointed to the electrophysiology along with also endocutter units as bright spots inside the medical device group.

“along with also so having said that will, we do have areas where we need to improve, along with also we’ll improve in those areas through quite a few factors as we’ve always done that will at Johnson & Johnson in recent times: A Great mix of internal innovation along with also acquisitions along with also brand-new technologies. I don’t think that will’s ever been an issue for us. We’ve always been able to do that will,” Caruso said.

The company’s consumer segment generated $3.4 billion inside the quarter, up 1.3 percent by the year-ago quarter along with also better than the $3.33 billion analysts had expected. Excluding the net impact of acquisitions along with also divestitures, worldwide sales grew 2 percent.

J&J’s consumer business has struggled along with additional incumbents inside the space. Baby care sales dipped to $457 million by $455 million, or nearly 3 percent year-over-year when excluding currency. J&J is usually required to relaunch the line later This kind of year.

In wake of the brand-new tax law, the company plans to invest more than $30 billion in research along with also development along with also capital investments inside the U.S. over the next four years, an increase of 15 percent.

Caruso said the brand-new law provides more flexibility to use J&J’s capital, including to create brand-new ways to improve health care along with also manufacture brand-new technologies inside the U.S.

“We’re very proud we’re able to do that will, especially inside the U.S.,” he said.

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