Johnson & Johnson Reports Sales, Earnings Gains in Q3 and Expects ‘Strong Momentum Entering into 2021’

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NEW BRUNSWICK, N.J.—Johnson & Johnson  (NYSE: JNJ) reported Tuesday that both its sales and earnings increased in the third quarter, and the company noted that due to “positive trends” across its diverse health care businesses, it is raising its full-year sales guidance by $1 billion and earnings by 15 cents per share. The company noted that the new guidance reflects the “strength of the recovery and strong underlying business fundamentals.” In the third quarter, sales rose 1.7 percent to $21.1 billion, with the adjusted operational increase coming in at 2 percent, “despite the estimated negative impact of the COVID-19 pandemic.”

Earnings in the quarter totaled $5.87 billion, representing a 3.5 percent increase from $5.67 billion in the year-ago quarter.

“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,” chairman and chief executive officer Alex Gorsky said in the announcement.

“I am proud of the relentless passion and Credo-led commitment to patients and customers that our colleagues around the world continue to demonstrate as we boldly fight the COVID-19 pandemic. Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety and efficacy.”

He added, “This resilient mindset, combined with our strategic capabilities and execution excellence, increase our optimism for continued recovery in 2020 and strong momentum entering into 2021.”

In the Medical Devices business segment, which includes contact lenses, worldwide operational sales (excluding the net impact of acquisitions and divestitures) declined 3.3 percent in the third quarter to $6.1 billion. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures across the company’s surgery, orthopaedics and vision businesses, the announcement noted. The results also reflect “market recovery versus the second quarter,” J&J noted.

In the vision care segment, worldwide sales dropped 9.4 percent to $1.08 billion in the quarter, even as U.S. vision sales rose 3.1 percent to $473 million.

The contact lens category in the U.S. showed particular resiliency as Q3 sales rose 10.9 percent to $375 million. In the international group, contact lens sales dropped 18.1 percent to $455 million. As a result, J&J’s overall contact lens business declined 7.1 percent in the third quarter to $830 million.