J&J Ups Sales Forecast as Cancer Drugs Drive Growth

(Bloomberg) -- Johnson & Johnson raised its revenue guidance for the year, as strong sales in its pharmaceutical unit helped cushion a decline in the consumer and medical technology businesses.

• Second-quarter adjusted earnings were $2.58 a share, topping the $2.45 average of analysts’ estimates. To read more details on the results, click here.

Key Insights

• The company’s full revenue is actually down from a year prior. Part of that can be attributed to the company’s divestiture of its medical sterilization business, ASP, which it sold to Fortive Corp. earlier this year.
• The company was also hit badly by foreign exchange rates. Almost half of J&J’s sales come from outside the U.S., and its fastest-growing segment -- overseas pharmaceuticals -- had its growth cut nearly in half because of currency fluctuations.
• J&J’s drug business is the largest of the company’s three main segments and accounts for more than half of all revenue. Its cancer drugs, including Darzalex and Imbruvica, drove growth in the quarter and were up 9.8% from a year prior.

Market Reaction

• The shares were down 1% to $133.41 at 9:43 a.m. in New York. The stock is up 4.4% this year to date as of Monday’s close, trailing the broader market.

To contact the reporter on this story: Riley Griffin in New York at rgriffin42@bloomberg.net

To contact the editor responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net

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