Earnings and results continue to be strong.
Management elaborated on its three-year growth prediction, centered around a strong pharma pipeline.
I consider J&J to be not quite as appealing as a couple of other pharmaceuticals at this time.
Johnson & Johnson (NYSE:JNJ) gave its third-quarter earnings results. As it has been over the last couple years, the company’s pharmaceutical division has outperformed, with double-digit revenue growth, while the devices business and consumer business plodded along with revenue growth in the low single-digits. This article looks at J&J’s latest quarter, it’s three year growth plan, and, as always valuation.
Results were in line with some fairly optimistic expectations: Sales increased 4.3% operationally. Without the Hepititus C divestiture, sales would have increased 5.9% year-over-year. For the first time in awhile, currency has ceased to be a strong negative headwind on earnings.
Looking at things segment-by-segment, consumer business revenue was just about flat, operationally and excluding the impact of some divestitures in wound care and women’s health. A lot of the strength came from skin care, which benefited from a seasonal inventory build in Dabao product. Skin care was also impacted by an acquisition of U.S. Vogue and NeoStrata.
Medical device revenue increased 0.7% operationally. There were divestitures in Cardiovascular and diagnostics, however. Adjusting for that, worldwide sales were up 3.1%.
Pharmaceutical revenue increased 9.0% operationally, and excluding for diverstitures and acquisitions, that would have been 10.7% revenue growth worldwide. Immunology really lead the way with increased penetration from STELARA, a plaque psoriasis drug, and SIMPONI ARIA, for rheumatoid arthritis.
In Oncology, IMBRUVICA continues to be very strong as more and more patients are turning to this drug for treatment of several different diseases, including types of Leukemia and Lymphoma. Also, DARZALEX continued to take in patients in the US and launched in 10 countries in Europe.
Fuente: Seeking Alpha
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