Johnson & Johnson (JNJ)’s Strong Second Quarter

Johnson & Johnson (NYSE:JNJ)Johnson & Johnson (NYSE:JNJ) today reported second-quarter results that had shareholders smiling. Top-line and bottom-line numbers reflected solid growth and beat analyst estimates. Shares were up around 1% in early trading.

By the numbers
Revenue for the second quarter came in at $17.9 billion. That reflects an 8.5% jump from the same quarter in 2012. The sales figure also beat analysts’ expectations of $17.7 billion.

Johnson & Johnson (NYSE:JNJ) reported net earnings for the quarter of $3.8 billion, or $1.33 per diluted share. Excluding special items, second quarter net earnings were $4.3 billion — a 17.7% year-over-year increase. The company reported non-GAAP earnings per diluted share of $1.48. That amount represents a 13.8% increase compared to the second quarter of last year. Analysts were anticipating non-GAAP earnings of $1.39 per share.

Special items during the quarter included $308 million in litigation expenses, $87 million in costs related to integration of Synthes, and $61 million related to the DePuy ASR Hip program. The total for these special items of $456 million was considerably less than the $2.2 billion reported for the second quarter of 2012.

Behind the numbers
Overall, international markets contributed more to growth than did U.S. markets. Johnson & Johnson (NYSE:JNJ) reported international sales growth of 9% compared to domestic sales growth of 8%.

Pharmaceuticals stood out as the fastest-growing division for Johnson & Johnson (NYSE:JNJ). Worldwide pharmaceutical sales jumped 11.7% year-over-year to $7 billion. The company’s biggest-selling drug, Remicade, generated sales of nearly $1.7 billion, up 9.8% compared to the second quarter of 2012.

Several other drugs in Johnson & Johnson (NYSE:JNJ)’s portfolio are growing strongly. Immunology drugs Symponi and Stelara grew sales by 40% and 49.6% year-over-year, respectively. Incivo experienced a sales jump of 68.6%. Sales for cancer drug Zytiga soared by over 70% compared to the second quarter of 2012.

Medical devices and diagnostics also performed well. Sales for the division totaled $7.2 billion, a 9.6% increase over the same quarter last year. This growth stemmed in large part from the acquisition of Synthes.

Consumer products lagged behind with sales of $3.7 billion — a 1.1% increase year-over-year. Over-the-counter drugs such as Tylenol and Motrin were solid contributors to these results, as were baby care and women’s health products.

Looking ahead
The future continues to look bright for Johnson & Johnson (NYSE:JNJ). The company increased its earnings guidance for full-year 2013 to $5.40-$5.47 per share excluding special items.

Prospects for sustained pharmaceuticals division growth, in particular, appear to be good. Johnson & Johnson (NYSE:JNJ) claims quite a few drugs building sales momentum, including Zytiga, Xarelto, and Incivo.

There are several solid pipeline candidates also. The Food and Drug Administration granted Breakthrough Therapy Designation to daratumumab in treating multiple myeloma. A New Drug Application, or NDA, was submitted earlier this year for ibrutinib as a treatment for chronic lymphocytic leukemia/small lymphocytic lymphoma and as a second-line treatment for mantle cell lymphoma.

Add to all of this the fact that Johnson & Johnson (NYSE:JNJ) pays a dividend yield of 2.9% and has increased its dividend for 50 years in a row. The latest financial results simply underscore that Johnson & Johnson (NYSE:JNJ) has been and should continue to be a smart long-term investment.

The article Johnson & Johnson’s Strong Second Quarter originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!