Johnson & Johnson Q3 numbers top expectations

Johnson & Johnson posted better-than-expected third-quarter numbers on Tuesday and lifted its earnings outlook for the year.

The company said net earnings for the quarter came in at $4.3bn, or $1.53 a share, up from $3.4bn or $1.20 a share in the same period a year ago. Adjusted EPS rose to $1.68 from $1.49, beating analysts’ expectations of $1.65.

Meanwhile, sales were up 4.2% to $17.8bn, beating expectations of $17.7bn.

The company maintained its sales guidance for the full year 2016 of $71.5bn to $72.2bn but upped its adjusted earnings guidance to $6.68-$6.73 per share. The lower end of the range was previously $6.63.

J&J said worldwide pharmaceutical sales rose 9.2% to $8.4bn, while worldwide medical devices sales edged up 1.1% to $6.2bn. This helped to offset a 1.6% drop in consumer sales to $3.3bn.

Chairman and chief executive officer Alex Gorsky said: “Our third-quarter results reflect the success of our new product launches and the strength of our core businesses, driven by strong growth in our Pharmaceuticals business. With a number of regulatory approvals, several new drug application submissions and new breakthrough therapy designations from the FDA, we are increasingly confident in our pipeline expectation of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1bn.

"Our broad-based business model, strategic investments and talented colleagues position us well for continued leadership in health care."

At 1220 BST, J&J shares were up 0.3% to $118.80 in pre-market trade.