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Johnson & Johnson’s stock rose 1.5% in premarket trade Tuesday, after the medtech and drug company posted better-than-expected third-quarter earnings and raised its profit guidance.
The New Brunswick, N.J.-based company posted net income of $4.309 billion, or $1.69 a share, for the quarter, after earnings of $4.310 billion, or $1.62 a share, in the year-earlier period. Adjusted per-share earnings came to $2.66, ahead of the $2.52 FactSet consensus.
Sales rose 6.8% to $21.351 billion from $19.996 billion a year ago, also ahead of the $21.036 billion FactSet consensus.
The company’s innovative medicine segment’s sales rose 5.1% to $13.893 billion. MedTech sales rose 10% to $7.458 billion.
The company spun off its consumer health business earlier this year into a separate company called Kenvue
KVUE,
Kenvue houses the company’ consumer health business which includes a host of household name brands, including Tylenol, Listerine, Band-Aid, Neutrogena and Nicorette.
J&J raised the midpoint of its full-year sales guidance and now expects sales to range from $83.6 billion to $84.0 billion, up from August guidance of $82.3 billion to $84.0 billion.
It expects full-year EPS to range from $10.02 to $10.08, compared with prior guidance of $9.90 to $10.00. The company expects adjusted EPS to range from $10.07 to $10.13, compared with prior guidance of $10.00 to $10.10.
J&J’s stock
JNJ,
has fallen 11% in the year to date, while the Dow Jones Industrial Average
DJIA
has gained 2.6% and the S&P 500
SPX
has gained 14%.
Of the 18 analysts tracked by FactSet who cover J & J shares, 10 have a buy rating, seven have a hold rating and one is underweight, or sell.
