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Johnson & Johnson Q3 Earnings Top Estimates; Lifts FY21 View Above Market

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Drug major Johnson & Johnson on Tuesday raised again its forecast for fiscal 2021 earnings and sales, which are above market view, after reporting higher results in the third quarter. The company's quarterly adjusted earnings also beat market estimates.

In pre-market activity on the NYSE, JNJ shares were gaining around 1.24 percent to trade at $162.10.

In the third quarter, Johnson & Johnson's Single-Shot COVID-19 Vaccine generated sales of $502 million, including $270 million in the U.S. and $233 million in the international region.

For fiscal 2021, the company now expects adjusted earnings per share, including Covid vaccine, of $9.77 to $9.82, higher than previously expected $9.60 to $9.70, and up 21.7 percent to 22.3 percent from last year.

Adjusted operational earnings per share is now projected to be $9.65 to $9.70, higher than previously expected $9.50 to $9.60, and up 20.2 percent to 20.8 percent from last year.

Analysts expect the company to earn $9.66 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Full-year sales including Covid Vaccine is now expected to be $94.1 billion to $94.6 billion, compared to previously expected $93.8 billion to $94.6 billion.

Revenue from base business would be $91.6 billion to $92.1 billion, compared to earlier expected $91.3 billion to $92.1 billion.

Full-year sales including Covid Vaccine would grow 13.9 percent to 14.5 percent from last year, and sales from base business would grow 10.9 percent to 11.5 percent.

Full-year Operational sales including Covid Vaccine would be $92.8 billion to $93.3 billion, up 12.4 percent to 13.0 percent from last year. Operational sales from base business would be $90.3 billion to $90.8 billion, up 9.4 percent to 10.0 percent.

Analysts expect revenues of $94.3 billion for the year.

Alex Gorsky, Chairman and Chief Executive Officer, said, "Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health."

For the third quarter, net earnings grew 3.2 percent to $3.67 billion or $1.37 per share from last year's $3.55 billion, or $1.33 per share.

Adjusted earnings were $6.97 billion or $2.60 per share, compared to $5.87 billion or $2.20 per share a year ago.

The company's sales for the quarter rose 10.7 percent to $23.34 billion from $21.08 billion last year. Operational sales growth was 9.9 percent and adjusted operational growth was 10.6 percent.

Analysts expected the company to earn $2.35 per share on sales of $23.72 billion.

In the quarter, domestic sales grew 7.9 percent from last year to $11.96 billion, and International sales climbed 13.8 percent to $11.38 billion.

Quarterly sales from Consumer Health segment were up 5.3 percent, Pharmaceutical sales were up 13.8 percent, and Medical Devices grew 8 percent.

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