Johnson & Johnson’s Second-Quarter Sales Slow But Outcome Tops Expectations

Johnson & Johnson (JNJ), the maker of consumer, pharmaceutical and medical, reported declines in sales for its second quarter although the result was still better than the consensus, while earnings also came in ahead of expectations.

Reported sales fell 1.3% to $20.56 billion, but that was ahead of the consensus on Capital IQ for $20.39 billion. Adjusted earnings climbed to $2.58 a share from $2.10 in the same period of 2018, ahead of the projection on the Street for $2.44 a share.

“We delivered solid second-quarter underlying sales growth and strong earnings growth that enables us to make investments in innovation to accelerate performance in each of our businesses,” said Alex Gorsky, the company’s chief executive. “Our pipelines continue to progress with the launch of new products and several regulatory submissions and approvals, which positions us well to deliver the next wave of transformational products and solutions.”

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The maker of Clean & Clear skin-care products, Band-Aid wound care and Acuvue contact lenses raised its full-year guidance for estimated reported sales to $80.8 billion to $81.6 billion from $80.4 billion to $81.2 billion projected in April. That would be a year-on-year loss of 1% to flat, compared with the previous outlook for a 1.5% to 0.5% loss.

Johnson & Johnson maintained its view for adjusted earnings in a range of $8.53 to $8.63 a share. Shares in the New Brunswick, NJ-based company were down 1.4% in early trading.