Johnson & Johnson predicts slower growth for 2019

American healthcare group Johnson & Johnson has reported better-than-expected fourth-quarter numbers – but forecast below-estimate sales growth for 2019.

Fourth-quarter sales were $20.4bn, up 1% year-on-year and ahead of analyst expectations, while net earnings came in at $3bn. Last year Johnson & Johnson reported a fourth-quarter loss of $10.7bn after changes to US tax laws.

Full-year sales rose 6.7% to $81.6bn and net earnings were $15.3bn.

Alex Gorsky, chairman and chief executive, said there had been an “accelerated underlying sales performance across each of our businesses, where we have also leveraged our scale across the enterprise to improve margins.

“Looking ahead, the strength of our broad-based business and disciplined approach to portfolio management positions us to continue to fuel investments in innovation...and deliver strong performance over the long-term.”

However, the group also announced full-year sales guidance for 2019 of between $80.4bn and $81.2bn, which it said reflected “expected operational growth in the range of 0% to 1%”. Analysts had been looking for a forecast of around $82.6bn.

The fourth quarter benefited from a strong performance in pharmaceuticals, where sales reached $10.19bn. Leading drugs include Stelara, which is used to treat Crohn’s Disease, and cancer treatment Zytiga.

Johnson & Johnson’s smaller consumer business, which includes talcum powder and Acuvue contact lenses, reported fourth-quarter sales of $3.55bn. But the medical device unit fared less well, with sales falling 4% to $6.67bn, missing forecasts.