Johnson & Johnson (JNJ - Get Report) posted stronger-than-expected second quarter earnings Tuesday and boosted its full-year sales outlook as international pharmaceutical revenues offset a domestic pullback.
Johnson & Johnson said adjusted diluted earnings for the three months ending in June came in at $2.58 per share, up 22.8% from the same period last year and firmly ahead of the Street consensus of $2.44 per share. Reported group revenues, Johnson & Johnson said, fell 1.3% to $20.56 billion but again beat analysts' forecasts of a $20.39 billion tally.
Shares were held down at the start of trading Tuesday, however, amid concern for its potential to face a big liability settlement in Oklahoma, where the state Attorney General, Mike Hunter, said the company had caused "utter confusion" in its marketing about the risks associated with the use of painkillers. The state wants J&J to pay as much as $17 billion over the next 30 years to address its role in the nation's opioid crisis.
Johnson & Johnson shares, a Dow component, were marked 1.8% lower at the start of trading following the earnings release to change hands at $132.25 each, a move that would trim the stock's year-to-date decline to around 2.5%.
Looking into 2019, Johnson & Johnson said it sees operational sales growth of 3.7%, up from a prior forecast of between 2% and 3%, guiding for a topline of $82.4 billion to $83.2 billion. However, the company tweaked its full-year adjusted earnings estimate to a range of $8.53 to $8.60 per share, adding 3 cents to the lower end put trimming 5 cents from the top end.
"We delivered solid second-quarter underlying sales growth and strong earnings growth that enables us to make investments in innovation to accelerate performance in each of our businesses," said CEO Alex Gorsky. "Our pipelines continue to progress with the launch of new products and several regulatory submissions and approvals, which positions us well to deliver the next wave of transformational products and solutions."
"I am proud of our talented colleagues across Johnson & Johnson who continue to deliver significant healthcare advances to improve the lives of patients and consumers around the world," he added
Johnson & Johnson said U.S consumer sales rose 4.1% to $1.537 billion, but noted that domestic pharmaceutical sales fell 2% to $5.78 billion. That was offset, however, by a 6.5% surge in international pharma sales, which hit $4.75 billion.