Johnson & Johnson posts better than expected Q2 earnings

By: Miguel A. Rodriguez

09:45, 14 September 2020

Although it was affected by the pandemic, the company had good results.

The 130 years old medical devices, pharmaceutical, and consumer packaged goods developer and innovator,Johnson & Johnson, posted its Q2 financial report. 

Compared to the same time last year, the quarterly profit dropped 35%, since hospitals had to delay elective surgeries due to the pandemic. This situation impacted the medical devices business.

In the past three months, J&J had an EPS of $1.36, which totaled $3.63 billion. Last year it reported an income of $5.6 billion.

The revenue came in at $18.3 billion, higher than the expected $17.6 billion. However, it is 10% lower compared to last year's. The EPS was $1.67, higher than $1.49 expected by specialists.

Unlike other companies which didn't provide any further financial guidance, Johnson & Johnson revealed its forecasts.  For the whole year, it expects an adjusted EPS of up to $7.95 from a previous high of $7.90. The sales were increased from a high of $80.5 billion to $81.4 billion.

Also, the company generated revenue of $10.7 billion in the pharmaceutical business, a 21% increase from last year. The numbers went up due to the COVID-19 vaccine that it is currently working on. According to J&J’s CEO, the human trial will start next week.

The company’s stock price was less than 1% higher during pre-market trading. 


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.