Johnson & Johnson Q2 Earnings Beat Expectations; Raises FY21 Outlook, Sees $2.5B Sales From COVID Vaccine

Photo by Rafi muhammed from Pixabay

Johnson & Johnson (NYSE: JNJ) reported Q2 adjusted earnings of $2.48 per share, almost 50% higher than the $1.67 posted a year ago and better than the consensus of $2.27. Net sales increased 27% Y/Y to $23.3 billion, and ahead of the $22.1 billion consensus.

Pharmaceutical contributed $12.6 billion in sales, +14%, due to Stelara (ustekinumab), Dazalex (daratumumab), Tremfya (guselkumab), Erleada (apalutamide), Imbruvica (ibrutinib), and paliperidone palmitate. 

This growth was partially offset by biosimilar and generic competition, with declines primarily in Remicade (infliximab).

Medical Devices grew 58.7% to $6.9 billion, primarily driven by the benefit of market recovery from COVID-19 impacts and the associated deferral of medical procedures. 

Consumer health segment sales increased 10% Y/Y to $3.7 billion, primarily driven by skin health/beauty growth. 

Outlook: JNJ raised FY21 guidance and now expects overall sales of $92.5 billion - $93.3 billion, including $2.5 billion - $3 billion from COVID-19 Vaccine sales. In April, it guided for sales of $89.3 billion - $90.3 billion.

It expects adjusted EPS of $9.60 - $9.70, as against the earlier outlook of $9.42 - $9.57, higher than the consensus of $9.52.

Price Action: JNJ shares are up 1.07% at $170.25 during the premarket session on the last check Wednesday.