Johnson & Johnson posts better than expected Q2 earnings

By: Miguel A. Rodriguez

09:45, 14 September 2020

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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. 

Sources: cnbc.com, finance.yahoo.com


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