Johnson and Johnson beats on Q3 EPS, raises full-year guidance

Johnson & Johnson posted higher than expected third quarter earnings despite a meagre increase in sales, especially in its consumer goods arm, and raised its full-year guidance.

For the three months ending on 31 September, the company posted a 1.9% rise in revenues for 3.4% growth in adjusted earnings per share on a non-GAAP basis to reach $2.12 (consensus: $2.01).

Net income meanwhile was higher by 1.5% to $5.67bn.

On a constant currency basis or "operational" basis, the company's revenues rose by 3.2%, driven by a 5.4% jump in overseas sales versus growth of just 1.2% in the US.

Sales were strongest in the company's largest unit, pharmaceuticals, jumping by 6.4% to $10.88bn, alongside an increase of 3.3% in the consumer segment to $3.5bn and despite a drop of 2.0% in Medical Devices to $6.38bn.

However, while sales in the latter unit were dragged lower by divestitures, in the case of the former the opposite was true.

Excluding acquisitions and divestitures, consumer segment sales were up by only 1.3%, those in pharma by 6.4% and those for Medical Devices up by 5.2%.

Pharma sales were driven by Stelara, a treatment for inflammatory diseases, and Darzalex, J&J's treatment for multiple myeloma.

For the full-year, the company lifted its target range for sales from a drop of 0.0-1.0% to a rise of between 0.2-0.7% or $81.8-82.3bn.

Management was also expecting higher adjusted EPS, guiding towards a range of $8.62-8.67 or an increase of 5.4-6.0% versus 4.3-5.5% previously.

As of 1448 BST, J&J shares were rising by 2.47% to $133.95.