The health care titan stock moves up after the company announced its earnings
On Tuesday, American based company, Johnson & Johnson declared its earnings. The world’s biggest pharmaceutical organization posted a net income of $3.2 billion –up from $2.53 billion last year. The EPS was calculated to be $1.15 per share –up from 89 cents last year.
Although J&J posted strong earnings however the sales of the company fell to $17.81 from $18.25 billion lesser than analysts’ estimation of $17.88 billion, compiled by Thomson Reuters. The multinational company proposed that the decline in the sales is due to the the decline in purchasing power of the consumers in the overseas market.
The health care giant shared its plan of contributing more in the medical device market and its future launch of 30 new devices including newly designed insulin pump. Earlier this month, the company announced that it would cut 3,000 jobs to expand its saving up to $1 billion to be able to research and develop on products like artificial knees and devices for trauma surgery.
Company’s chairman and CEO Alex Gorsky stated on a conference call. “We’re pleased with the results. We’re optimistic about the opportunities in health care and the strength of our business.” The “prescription drug” segment did report higher sales among all. After increasing by nominal 0.8%, the unit managed to make $8.06 billion worth sale. The top sales were the rheumatoid arthritis treating drug; Remicade, psoriatic arthritis treating drug; Stelara, and a blood thinner; Xarelto.
Moreover, the health care titan claims that after having slumping sales, the consumer products unit has finally managed to tread on the path of recovery. In the fourth quarter, the unit had sales of $3.32 billion. In comparison with last year the sales had declined by around 8%.
The medical device maker’s heart device, under the name Cordis reported a $1.21 billion gain. Furthermore, the company posted a decline of 3.3% of sales of medical devices. In the fourth quarter, the U.S. based manufacturer’s medical device unit had sales amount to $6.43 billion.
Analyzing the quarter of the company, a professor and pharmaceutical analyst at University of Michigan’s Ross School of Business, Erik Gordon expressed that the quarter was pretty “decent.” The upsetting sales in medical device unit were offset by favorable sales of drug. He further added that both investors and analysts will eye on the company to see whether it is consistent in increasing its sales.
At the market which closed on Friday, Johnson & Johnson stock price stood at $104.29.