Johnson & Johnson lifts full-year guidance

Johnson & Johnson lifted its earnings guidance for full-year 2016 as it reported a drop in second-quarter net earnings but a rise in sales.

The company posted sales of $18.5bn, up 3.9% versus the second quarter of 2015. However, net earnings for the period fell to $4bn or $1.43 from $4.52bn or $1.61 per share.

Chairman and chief executive officer Alex Gorsky said: "We continue to see good momentum through the first half of 2016, delivering solid results in the second quarter, supported by strong underlying growth across our enterprise.

“We saw notable strength in our Pharmaceuticals business due to the continued success of new products, and also achieved significant clinical milestones, advancing our robust pipeline. In our Consumer business, we are executing strategic portfolio decisions to expand our market leadership in key segments, and in Medical Devices, we are continuing to accelerate our growth driven by new product launches and transforming our commercial models."

Johnson & Johnson raised its sales guidance for 2016 to between $71.5bn and $72.2bn and its adjusted earnings guidance to between $6.63 and $6.73. Previous guidance was for between $71.2bn and $71.9bn and $6.53 and $6.68 a share.

Worldwide pharmaceutical sales were up 8.9% on the previous year at $8.7bn, while domestic sales increased 13.2%.

At 1450 BST, shares were up 1.7% to $125.21.