Johnson & Johnson (JNJ) said Tuesday, Oct. 17, the recent hurricanes had a limited impact on the company's sales.
"In terms of sales, the limited impact we experienced in the third quarter is not the result of any supply disruption but rather lost surgery days in those areas affected by the storms," said chief financial officer Dominic Caruso on an earnings call.
Caruso said that while it remains to be seen whether volumes related with the lost surgeries will be recouped in future quarters, the company is "very well-positioned" in terms of future supply.
The New Brunswick, N.J.-based company said it has six manufacturing facilities in Puerto Rico, all of which are open with generator power.
"While we cannot rule out the potential for intermittent shortages of certain product formats, many of our products have dual production sites and backup supply outside of Puerto Rico to help meet demand," he said. "Based on what we know today, we do not foresee any material impact to future results."
Johnson & Johnson unveiled third-quarter results that surpassed analysts' expectations and raised its full-year adjusted EPS and sales guidance.
The company reported adjusted diluted earnings per share of $1.90, up 13.1% year-over-year, on revenue of $19.7 billion, representing a 10.3% increase from the year-ago period.
Analysts had forecast, on average, non-GAAP EPS of $1.75 on revenue of $19.3 billion, according to FactSet Research Systems Inc.
Pharmaceutical sales worldwide were $9.7 billion during the quarter, up 15.4% compared to the year-ago period. Medical devices sales were $6.6 billion, up 7.1% year-over-year, and consumer sales rose 2.9% to $3.4 billion.
Johnson & Johnson hiked its full-year sales outlook to a range of $76.1 billion to $76.5 billion, compared to the previous guidance of $75.8 billion to $76.1 billion. It now expects adjusted earnings of $7.25 to $7.30 per share, compared with the previous forecast of $7.12 to $7.22 a share.
Shares of Johnson & Johnson were trading at $139.21 on Tuesday, up 2.3%.
Also on Tuesday, Johnson & Johnson said it has decided not to pursue global approvals of sirukumab for the treatment of moderately to severely active rheumatoid arthritis. The company's Janssen Biotech Inc. unit on Sept. 22 said it has received a complete response letter from the U.S. Food and Drug Administration for the biologics license application seeking approval of sirukumab.
In addition, the company said Tuesday it has discontinued the clinical study of talacotuzumab in patients with acute myeloid leukemia.
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