Higher 3Q profit, improved outlook for Johnson & Johnson
NEW BRUNSWICK, N.J. (AP) — Johnson & Johnson's third-quarter profit jumped 23%, beating Wall Street forecasts, thanks to higher sales of its key medicines for cancer and immune disorders and an acquisition-related charge a year earlier.
The world's biggest maker of health care products also raised its financial forecast for the year, and its shares jumped more than 2% in premarket action.
J&J on Tuesday reported net income of $4.83 billion, or $1.81 per share. That was up from $3.93 billion, or $1.44 per share, in 2018's third quarter, when the drugmaker took a $1.13 billion charge related to research programs acquired with its purchase of Alios BioPharma.
Earnings, adjusted for one-time gains and costs, came to $2.12 per share, easily topping analysts' projections for $2, according to a survey of analysts by Zacks Investment Research.
Revenue of $20.73 billion, up 2% from $20.35 billion a year ago, also beat forecasts.
J&J's prescription drugs business boosted sales 5% to $10.88 billion, led by cancer drugs Darzalex and Imbruvica and by Simponi, Stelara and Tremfya, which treat immune system disorders such as psoriasis, rheumatoid arthritis and Crohn's disease.
The consumer products business, which makes pain relievers Tylenol and Motrin and skin care products, posted a 1.6% increase in sales, to $3.47 billion. The medical device and diagnostics business, once J&J's biggest segment, saw sales drop 3% to $6.38 billion.
The New Brunswick, New Jersey company forecast 2019 per-share earnings of $8.62 to $8.67, after adjustments for one-time items, and revenue of between $81.8 billion and $82.3 billion. In July, the company forecast adjusted per-share earnings between $8.53 and $8.63, and revenue between $80.8 billion and $81.6 billion.
In premarket...