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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!