In “Squawk on the Street” on CNBC, the co-anchor of the show Jim Cramer, comments on the Q2 earnings of Johnson & Johnson (NYSE:JNJ), which beats analysts expectations, and the performance of its CEO, Alex Gorsky.
Commenting on the performance of the company, Cramer said:
“More about Pharma sales, that pretty incredible, domestic sales up 36%, a 2 cents raise, I am sure that time people are going to say, listen that’s not enough. You want to bet against Gorsky? (CEO of Johnson & Johnson) or sellout Gorsky? Go ahead, knock yourself out, it’s a mistake, this company is going higher.”
On the fact that the Johnson & Johnson (NYSE:JNJ) stock is up 8% since Q1 and a lot of other stocks also being up by 8% since Q1, Cramer said:
“Look, it’s a good drug stock and I think that what happens is that people say: you know what? That’s not good enough, and then three weeks from now, they say, wait a second, of all the drug companies reported, Johnson & Johnson had the fastest growth. Now it’s pretty amazing. The only other one that really touches it, is Allergan, and obviously Allegan is in play.”
According to Cramer, Johnson & Johnson (NYSE:JNJ) is a good drug stock to bet on looking at its growth prospects and according to him Allergan, Inc. (NYSE:AGN) is another drug stock that is similar to Johnson & Johnson (NYSE:JNJ) in terms of faster growth going ahead.
Meanwhile, Johnson & Johnson (NYSE:JNJ) announced on July 15, 2014 that the growing sales of its Hepatitis C drug has boosted its revenue as well as earnings for the second Quarter. The company has also raised its full-year earnings guidance to $5.85 to $5.92 a share compared to its previous guidance of $5.80 to $5.90 a share.
As part the announcement of latest results, the company’s sales of $19.5 billion for the second quarter of 2014, showed an increase of 9.1% compared to the same period last year. Moreover, net earnings i.e. excluding special items, were $4.8 billion, showing an increase of 11.3% over the same period for 2013.