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Johnson & Johnson Stock Gains as Vaccine Sales Boost Q3 Earnings, 2021 Forecasts

Johnson & Johnson said it sees 2021 vaccine sales of $2.5 billion, with overall revenues rising to between $94.1 billion to $94.6 billion, following its Q3 earnings beat.

Johnson & Johnson  (JNJ) - Get Johnson & Johnson (JNJ) Report posted stronger-than-expected third quarter earnings Tuesday, and lifted its full-year revenue forecast, as vaccine sales are likely to reach $2.5 billion. 

Johnson & Johnson said adjusted earnings for the three months ending in September were pegged at $2.60 per share, up 18.2% from the same period last year and well ahead of the Street consensus forecast of $2.35 per share. Group revenues, Johnson & Johnson said, rose 10.5% to $23.3 billion, a figure that missed analysts' estimates of a $23.78 billion tally.

Looking into the final months of the year, Johnson & Johnson said it sees adjusted earnings in the region of $9.65 to $9.70 per share, up from a prior forecast of between $9.50 and $9.60, with sales -- including vaccines -- in the region of $94.1 billion to $94.6 billion, up from $92.5 billion to $93.3 billion.

"Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health," said outgoing CEO Alex Gorsky. "In the face of evolving marketplace dynamics resulting from the effects of COVID-19 and other global trends, we have continued to demonstrate the responsiveness and agility required to meet the needs of our stakeholders, while also successfully investing in a pipeline of innovation and key commercial platforms to drive our future growth."

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"I am incredibly proud of our Company's transformative growth over the last decade," he added. "As I prepare to transition the role of CEO to Joaquin Duato in January, I want to extend my deepest gratitude to our colleagues around the globe who work tirelessly to deliver solutions to address the world's most urgent and unmet healthcare challenges."  

Johnson & Johnson shares were marked 2.12% higher in early trading immediately following the earnings release to change hands at $163.50 each, a move that nudges the stock's year-to-date gain to around 4.5%.

Consumer health sales rose 5.3% to $3.7 billion, Johnson & Johnson said, while pharmaceutical sales jumped 13.8% to just under $13 billion. Medical device sales were up 8% from last year to $6.6 billion.

Vaccine sales for the third quarter, Johnson & Johnson said, came in at just over $500 million, a more than 200% increase from the prior period. 

"Overall, Johnson & Johnson had a relatively in-line quarter," said JPMorgan analyst Chris Schott. "As always with Johnson & Johnson, there were a lot of moving pieces in the quarter, but the core pharma biz (ex-COVID vaccine) continues to generate above market growth (driven by Darzalex) while the device business was only modestly impacted by the delta variant."