Johnson & Johnson (JNJ) posts strong Q2 results, lifts 2021 outlook

Summary 

  • Johnson & Johnson’s net earnings jumped 73 percent in the second quarter.
  • The company now anticipates its full-year revenue to grow up to 14.5 percent.
  • The medical device unit sales climbed 62.7 percent to US$6.97 billion.

Johnson & Johnson (NYSE: JNJ) on July 21 reported strong second-quarter results and raised its revenue and profit guidance for full-year 2021.

The healthcare giant posted approximately 73 percent year-over-year growth in its second-quarter net earnings on a 27.1 percent increase in its sales. The sales were supported by robust topline growth across its medical device and pharmaceutical businesses.

Second-quarter update

Johnson & Johnson’s second-quarter net earnings totaled US$6.28 billion, or US$2.35 per share, compared with US$3.63 billion, or US$1.36 per share, in the year-ago period. Adjusted net earnings surged around 49 percent year over year to US$6.63 billion, or US$2.48 per share.

Reported sales during the three months came in at US$23.31 billion, up from US$18.34 billion in the second quarter previous year. The medical device unit sales climbed 62.7 percent to US$6.97 billion while the sales in the pharmaceutical unit grew 17.2 percent to US$12.60 billion. The consumer health unit recorded US$3.74 billion in sales, up 13.3 percent.

Johnson & Johnson said its single-dose COVID-19 vaccine generated US$164 million sales globally during the June quarter, compared to US$100 million in the January-March quarter.

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Source: Pixabay

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Full-year forecast

Annual revenue is now projected to come in between US$$93.8 billion and US$94.6 billion, which represents a year over year growth of up to 14.5 percent. Previously, the company was expecting revenue to be in the range of US$90.6 billion to US$91.6 billion.

Johnson & Johnson anticipates adjusted EPS to be in the range of US$9.60 to US$$9.70, compared with the earlier estimate range of US$9.42 to US$9.57.

Meanwhile, Johnson & Johnson’s board has declared a third-quarter dividend of US$1.06 per share.

Share performance

Johnson & Johnson currently has a market capitalization of approximately US$443.60 billion. The company has a P/E ratio of 29.75 while its stock returned 7 percent year to date.

The shares were trading in the range of US$133.65 to US$173.65 in the last 52-week period.

Johnson & Johnson’s stock, which closed at US$168.45 on Tuesday, rose 0.92 percent in the pre-market trading on Wednesday.

READ MORE: IBM stock jumps after hours on Q2 topline growth

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.


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