Johnson & Johnson reports third-quarter earnings, beats analysts’ expectations

Johnson & Johnson on Tuesday released their third-quarter earnings results which beat analysts’ expectations. The quarter was led by higher sales of the company’s medical device unit and increased demand for some of its drugs.

Here’s how Johnson & Johnson performed in the third quarter:

·        Adjusted earnings per share: $2.20, vs $1.98 estimate

·        Revenue: $21.08 billion, vs $20.2 billion estimate

The health and body care company reported adjusted earnings of $2.20 per share on revenue of $21.08 billion, compared to analysts’ estimation of $1.98 per share on a $20.2 billion revenue, according to a survey by Refinitiv.

J&J also raised its full-year guidance to $7.95 to $8.05 per share from $7.75 to $7.95 per share. The company also raised its sales forecast to between $82 billion and $82.8 billion from $79.9 billion to $81.4 billion.

“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,” said J&J’s chairman and CEO Alex Gorsky. “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.”

Johnson &Johnson’s consumer unit generated $3.5 billion in revenue, up from 1.3% a year ago. While its medical device unit generated $6.1 billion, up 1.7% from a year ago.

COVID-19 vaccine trials

Shares of J&J fell more than 3% on Tuesday after the company announced that it temporarily stopped the process of its COVID-19 vaccine trial due to “unexplained illness” in a participant.

The company began its phase 3 vaccine trial last month, which made it the fourth pharmaceutical company backed by the Trump administration Operation Warp Speed, COVID-19 vaccine program.

The company made this announcement on Monday evening after a participant stopped responding to the treatment as expected, rather it took a different turn. J&J said it wasn’t sure whether the participant was in the placebo arm or vaccine arm but awaited a review of illness from an independent data and safety monitoring board.

“Adverse events illnesses, accidents, etc. even those that are serious are an expected part of any clinical study, especially large studies,” Johnson & Johnson wrote in a statement.

J&J’s COVID-19 vaccine is being developed by its pharmaceutical units, Janssen Pharmaceuticals, with its Phase III trial involving 60,000 participants.

Despite the temporary stop on the vaccine trials, J&J investors are being encouraged by the third quarter earnings report.

“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; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need,” said Gorsky.

On September 8, AstraZeneca announced that its vaccine trial had been put on hold due to an unexplained illness in a patient in the U.K. The drugmaker has since resumed its trial in the U.K. and in other countries.