Johnson & Johnson (NYSE:JNJ) reported its financial results of the third quarter of 2016, announcing better-than-anticipated sales and earnings, and raising the forecasts for the full-year 2016.
According the report, sales of J&J for the third quarter increased 4.2% to $17.8 billion from the same period last year, which was above analysts’ estimate of $17.74 billion. Net earnings in the third quarter was $4.27 billion, increasing from $3.36 billion the same period last year. Diluted earnings per share was $1.53, which was up from $1.20 per share last year. In addition, adjusted earnings per share, excluding certain items, also increased to $1.68 per share, which was more than the previous expectation of $1.66 per share.
For the full-year of 2016, the company kept the sales guidance of between $71.5 billion to $72.2 billion, and increased its guidance for adjusted earnings per share to $6.68 to $6.73 per share.
According the Alex Gorsky, the Chief Executive of Johnson & Johnson, the satisfying results were driven by growth in pharmaceuticals business, and owing to the launch of new products and the strength of core businesses.
“With a number of regulatory approvals, several new drug application submissions and new breakthrough therapy designations from the FDA, we are increasingly confident in our pipeline expectation of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1 billion,” said Alex.
However, J&J also meet challenges. Other segments of the company are not as strong as pharmaceuticals business. In the latest quarter, sales of consumer health products dropped 1.6% to $3.26 billion. In addition, the strengthening U.S. dollar and weakness in emerging markets also threaten the company.
In respond to the announcement of Pfizer Inc on Monday, which said Pfizer would start selling a biosimilar version of blockbuster rheumatoid-arthritis treatment Remicade late this year at a lower price, J&J said that it would fight the launch of biosimilar products.