Johnson & Johnson’s Impressive Quarter, Still Held Back by One Segment

By Chris Lange Published Jul 16, 10:57AM EDT

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Johnson & Johnson’s Impressive Quarter, Still Held Back by One Segment — © Chris Hondros / Getty Images

Johnson & Johnson (NYSE: JNJ | JNJ Price Prediction) released its most recent quarterly results before the markets opened on Thursday. For the second quarter, the pharmaceutical giant said that it had $1.67 in earnings per share (EPS) and $18.34 billion in revenue. That compares with consensus estimates of $1.48 in EPS and revenue $17.5 billion, as well as the $2.58 per share and $20.56 billion posted in the same period of last year.

Consumer Health sales decreased 3.4% on an adjusted operational basis to $3.30 billion. This was driven primarily by the COVID-19 pandemic, most notably reflected in skin health and beauty care products, followed by women’s health care products and international baby care products.

Pharmaceutical sales increased 3.9% to $10.75 billion. This increase was driven by Stelara, Darzalex, Imbruvica, Erleada and Tremfya.

Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 32.5%, driven by the estimated net negative impact of the pandemic and the associated deferral of medical procedures to the company’s Surgery, Orthopaedics, Vision and Interventional Solutions businesses.

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Looking ahead to the 2020 full year, Johnson & Johnson expects to see EPS in the range of $7.85 to $8.05 and adjusted operational sales between $81.0 billion and $82.5 billion. Consensus estimates are calling for $7.73 in EPS and $79.54 billion in revenue for the year.

Separately, the company has been accelerating its vaccine hopes with a fair amount of success. Look for results from its Phase 1/2a clinical trial of Ad26.COV2-S in the coming month.

Management noted that the company is continuing to navigate the external landscape successfully and that it remains focused on advancing the development of a vaccine to help address this pandemic and save lives.

Johnson & Johnson stock traded down less than 1% on Thursday, at $147.65 in a 52-week range of $109.16 to $157.00. The consensus price target is $164.24.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.