Johnson & Johnson (NYSE: JJ) today announced its first-quarter 2019 financial results. Sales rose minimally to USD 20.02 Billion compared to USD 20.01 Billion in 2018. Analysts expected sales to fall to USD 19.61 Billion. The Company earned USD 2.10 per share, beating analysts’ estimate of USD 2.03 per share.
Over half of J&J’s revenues came from prescription drug sales, which climbed to USD 10.24 Billion from USD 9.84 Billion the year-prior quarter. Anti-inflammatory treatment, Stelara, and Multiple myeloma drug, Darzalex, pulled through with better-than-expected sales.
Consumer product revenue dipped 2.4% to USD 3.32 Billion, falling short of analysts’ expectations of USD 3.41 Billion. The Company said sales were mainly driven by over-the-counter products like Tylenol and anti-smoking aids, but gains were offset by poor sales of baby-care products. Medical device sales also took a hit in the first quarter, decreasing to USD 6.46 Billion from USD 6.77 Billion in the year-earlier quarter.
“We continue to manage our portfolio with discipline and make investments across the enterprise that position as well to achieve long-term sustainable growth across three vital aspects of health care” Chief Financial Officer Joseph Wolk said, according to CNBC.
Johnson & Johnson tightened its full-year earnings forecast to a range of USD 8.53 to USD 8.63 per share from its previous estimate of USD 8.50 to USD 8.65. Sales are still expected to range between USD 80.4 Billion and USD 81.2 Billion for full-year 2019.
J&J recorded litigation expenses of over USD 400 Million in the first quarter. The majority of its legal costs came from a settlement of more than 25,000 lawsuits over blood thinner, Xarelto. Johnson & Johnson also continues to rack up expenses as it defends itself in thousands of cases accusing the Company’s talc baby powder of causing cancer.