Johnson & Johnson Reports Sales and Earnings Increases in Third Quarter and Raises Full-Year Guidance

By

NEW BRUNSWICK, N.J.—Johnson & Johnson (NYSE: JNJ) reported Tuesday that its sales increased 1.9 percent to $20.7 billion in the third quarter. The increase was 3.2 percent on an operational basis (which excludes the impact of currency exchange) and 5.2 percent on an adjusted operational basis (which excludes currency factors and the net impact of acquisitions and divestitures), the company’s announcement noted. J&J also increased its full-year sales and earnings guidance in its third-quarter report, which it said reflects “strong performance” in the year to date. Adjusted sales are now forecasted to rise in the range of 4.5 percent to 5 percent.

Adjusted net earnings rose 1.5 percent in the quarter to $5.67 billion (compared with $5.59 billion in the year-ago period). “Our third-quarter results represent strong performance, driven by competitive underlying growth in pharmaceuticals and medical devices, as well as continued optimization in our consumer business,” Alex Gorsky, chairman and chief executive officer, said in the announcement.

“As we look ahead, we remain confident in the strength of our broad-based business model, which is fueled by our disciplined portfolio management, focus on transformational innovation and dedicated employees around the world who position us for success today and well into the future.”

In its medical devices segment (which includes contact lenses), worldwide operational sales (excluding the net impact of acquisitions and divestitures) increased 5.3 percent, driven by the growth of the Acuvue contact lens business, among other products in this segment, according to the announcement. On a “reported” basis, however, sales in the medical devices segment declined 3.1 percent to $6.38 billion.

The U.S. vision care business achieved sales growth of 1.4 percent in the third quarter, with sales of $459 million compared with $452 million in the year-ago period. International vision care sales rose 8 percent to $734 million. On a worldwide basis, vision sales rose 5.4 percent (reported basis) to $1.19 billion in the quarter.

The contact lens segment within the U.S. market achieved 6.2 percent growth (from $319 million to $339 million) in the quarter, according to Tuesday’s earnings announcement.

For the nine-month period of 2019, J&J reported that its worldwide vision care business has achieved a reported sales increase of 1.8 percent, to a total of $3.48 billion.

U.S. contact lens sales rose 4.7 percent to $993 million in the first nine months of the year, according to J&J’s announcement.