Johnson & Johnson Beats Earnings, Concerns Linger Over COVID-19 Vaccine
On Tuesday before the opening bell, Johnson & Johnson (JNJ) reported better than expected earnings results with its fiscal year 2020 3rd-quarter earnings release. On the top line, revenues of $21.08B (+ 1.7% YoY) exceeded expectations of $20.2B. On the bottom line, adjusted earnings per share of $2.20 (+ 3.8% YoY) exceeded expectations of $1.98 per share, but the stock is still trading down this morning.
On the release, CEO Alex Gorsky stated: “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”
The company also increased guidance for Full Year Reported Sales by $1B and Adjusted EPS by $0.15. This was due to the strength of the recovery from the pandemic thus far and the strong fundamentals that the company holds.
The earnings were somewhat overshadowed due to the news that Johnson and Johnson will pause COVID vaccine trials due to a patient's "unexplained illness." The company released a statement stating, “We have temporarily paused further dosing in all our COVID-19 vaccine candidate clinical trials, including the Phase 3 ENSEMBLE trial, due to an unexplained illness in a study participant.”
Johnson and Johnson is the second of four large-scale, vaccine trials to come to a halt in the past weeks. AstraZeneca was the other halted. Johnson and Johnson is also one of four drug makers backed by the Trump administration’s COVID-19 vaccine program.
Disclosure: At the time of publication, I have no positions in any of the securities mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.