Johnson & Johnson (NYSE:JNJ) announced its second quarter earnings on Tuesday. Despite the declining profits, the results easily beat expectations. The company also raised its full year guidance for 2016.
According to the release, sales of the second quarter in 2016 was $18.48 billion, which increased 3.9% compared to the same period in 2015, beating expectations of $17.89billion. Domestic sales were up 7.4% and international sales increased 0.4%. According to the report, 2.7% of the sales decrease was due to the unfavorable currency movement, which hurt many multinational companies in the United States in recent years.
Net earnings for the second quarter were $4.0 billion, dropping from $4.62 billion in 2015. The diluted earnings per share was $1.43 and adjusted diluted earnings per share was $1.74, which beat the estimates of $1.68 per share.
The company also disclosed that the sales of prescription drugs increased 8.9% and reached $8.65 billion in the second quarter, which was promoted by the increasing sales of new medicines, such as Imbruvica for blood cancer and Xarelto for preventing heart attacks and strokes. In addition, sales of medical devices and diagnostics dropped to $6.41 billion and sales of consumer health products decreased 1.8% to $3.42 billion.
“We continue to see good momentum through the first half of 2016, delivering solid results in the second quarter, supported by strong underlying growth across our enterprise,” Alex Gorsky, the Chairman and CEO of Johnson & Johnson, said in the report. “I am proud of our dedicated and talented employees whose commitment to advancing health and well-being for patients and consumers around the world is fueling our growth.” He also mentioned that the company executes strategic portfolio decisions to enlarge their leadership to crucial segments, and they continue to speed up their growth by launching new products and converting commercial models.
The company also raised its earnings and sales guidance due to the positive results in the second quarter. The full year guidance for sales was up to $72.2 billion from $71.5 billion, and the adjusted earnings per share guidance for 2016 was up to $6.73 per share from $6.63 per share.
Johnson & Johnson’s shares increased over 3% in pre-market trading on Tuesday.