Income · Stocks to Consider and Updates

Johnson & Johnson Tops Q2 Street Views; Boosts Outlook

JNJ  Healthcare behemoth Johnson & Johnson (NYSE: JNJ – $124.79) reported adjusted earnings rose to $1.74 a share vs. $1.71 last year. Revenue ticked up 3.9% to $18.5 billion, despite effects of unfavorable currency rates that shaved 1.4% off the latest quarter’s total. Analysts had projected earnings of $1.68 a share on $17.97 billion in revenue. J&J’s pharmaceutical business, the company’s largest, grew 8.9% to $8.65 billion, lifted by a 13.2% increase in U.S. pharmaceutical sales. The company highlighted strong growth in new products, including blood-cancer drug Imbruvica, blood thinner Xarelto, multiple myeloma drug Darzalex, Type 2 diabetes treatments Invokana and Invokamet and prostate cancer drug Zytiga. Sales of hepatitis C drug Olysio, which has been outflanked by newer drugs, continued to slow. Sales in J&J’s consumer health products segment slipped 1.8% to $3.42 billion, largely due to Venezuela’s devaluation of its currency. The company’s medical device sales, meanwhile, edged a 0.8% increase to $6.41 billion, which represents about 35% of the company’s revenue.

       JNJ raised its guidance for the year again as the company topped 2Q expectations. The New Brunswick, N.J. – based company now expects earnings for the year of $6.63 to $6.73 a share, up from previous guidance for $6.53 to $6.68 a share. It also raised its revenue forecast to a range from $71.5 billion to $72.2 billion, up from $71.2 billion to $71.9 billion. This top-quality blue chip should appeal to conservative income accounts for its long-range total return potential. J&J hiked its dividend to an annual rate of $3.20 in April and yields 2.6%.


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