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Johnson & Johnson Posts Earnings Beat, Lifts 2020 Guidance

Johnson & Johnson posts better-than-expected third-quarter earnings as demand for its drugs as well consumer products and equipment increase.

Johnson & Johnson  (JNJ) - Get Report on Tuesday reported better-than-expected third-quarter earnings as demand for its drugs as well consumer products and equipment increased.

J&J said it earned $5.87 billion, or $2.20 an adjusted share, vs. $5.67 billion, or $2.12 a share a year ago. Analysts polled by FactSet had been expecting earnings of $1.98 a share. Revenue came in at $21.08 billion, above last year’s $20.73 billion and also above analysts’ estimates of $20.21 billion.

“Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in medical devices, growth in consumer health, and continued strength in pharmaceuticals,” CEO Alex Gorsky said in a statement.

The results came as J&J announced a pause in its Covid-19 vaccine study due to an unexplained illness in a study participant, which in turn caused its shares to slump in premarket trading on Tuesday. 

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A document sent to outside researchers running the 60,000-patient clinical trial said that a “pausing rule” has been met, that the online system used to enroll patients in the study has been closed, and that the data and safety monitoring board - an independent committee that watches over the safety of patients in the clinical trial — would be convened.

Separately, Johnson & Johnson raised its full-year guidance, saying it now expects expects per-share earnings of between $7.95 and $8.05, up from its previous forecast in July of between $7.75 and $7.95.

Johnson & Johnson said it now expects to see sales in 2020 of between $81.2 billion and $82 billion, up from its July projections of sales between $79.9 billion and $81.4 billion. 

Shares of Johnson & Johnson were down 1.3% at $149.87 in Tuesday trading. 

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