By Chelsey Dulaney
Johnson & Johnson on Tuesday nudged up its earnings guidance
for the year as results topped expectations in its second quarter
despite the impacts of a strong dollar and competition for its
hepatitis C treatment.
J&J said it now expects to post per-share earnings of $6.10
a share to $6.20 a share, up from its previous guidance of $6.04 a
share to $6.19 a share. The company is benefiting from growth in
its new diabetes and anticlotting treatments.
Shares, relatively flat over the past three months, edged up
0.7% in premarket trading.
New Brunswick, N.J.-based J&J is facing patent expirations
and increased competition for many of its pharma products, such as
its hepatitis C treatment Olysio. It also is preparing for the
threat of increased competition in the U.S. from lower priced
biosimilar versions of its blockbuster anti-inflammatory drug
Remicade.
Meanwhile, the strengthening of the U.S. dollar against foreign
currencies has hamstrung J&J and many of its health-care peers
in recent quarters. J&J said foreign-exchange rates had a
negative impact of 7.9% in the quarter.
Overall, J&J's pharmaceutical sales fell 6.6% to $7.9
billion in the quarter, as currency impacts and lower Olysio sales
offset 1% operational growth. J&J noted that a number of new
drugs helped drive operational growth in the quarter. Its Type 2
diabetes treatment Invokana saw sales surge 30.7% to $472 million,
while sales of anticlotting treatment Xarelto jumped to $1.65
billion from $1.38 billion a year ago.
Meanwhile, consumer sales fell 7% to $3.5 billion, as a 9.3%
currency hit offset 2.3% operational growth. J&J said it was
helped by sales of Zyrtec allergy medications and Tylenol
analgesics.
Excluding acquisitions, divestitures, and hepatitis C sales,
J&J's total underlying operational growth was 5%.
Overall, J&J reported a profit of $4.52 billion, or $1.61 a
share, up from $4.33 billion, or $1.51 a share, a year earlier.
Excluding certain items, per-share earnings were $1.71 in the
latest quarter.
Revenue fell 8.8% to $17.79 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.67 and revenue of $17.75 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Access Investor Kit for Johnson & Johnson
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US4781601046
Subscribe to WSJ: http://online.wsj.com?mod=djnwires