Johnson & Johnson lifts annual guidance as third-quarter sales, profit top estimates

Headline results for the third quarter:

Prescription drug sales

$10.3 billion (forecasts of $10 billion)

+6.7%

Overall revenue

$20.3 billion (forecasts of $20.1 billion)

+3.6%

Overall profit

$3.9 billion

+4.5%

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our pharmaceutical business," noted CEO Alex Gorsky. Chief financial officer Joe Wolk remarked "pharmaceuticals, I just can't say enough about that division for us. It continues to just generate new products in a profound way that's transformational to the current state of care, and that's led the growth of our company for many quarters now."

Other results:

US pharmaceutical revenue: $6.1 billion, up 4.8 percent

International pharmaceutical revenue: $4.2 billion, up 9.5 percent

Remicade: $1.4 billion, down 16.3 percent, broadly in line with analyst estimates

Stelara: $1.3 billion, up 16.5 percent, coming in just above predictions

Zytiga: $958 million, up 43.2 percent, ahead of forecasts of $795 million

Invega Sustenna/Xeplion/Trinza/Trevicta: $749 million, up 16.5 percent

Imbruvica: $705 million, up 37.7 percent

Pulmonary hypertension products (Opsumit, Tracleer and Uptravi): $656 million, up 3.8 percent

Xarelto: $612 million, down 3.6 percent

Simponi/Simponi Aria: $536 million, up 12.6 percent

Darzalex: $498 million, up 57.1 percent, but missing estimates of $510 million

Prezista/Prezcobix/Rezolsta/Symtuza: $490 million, up 4.9 percent

Looking ahead:

Johnson & Johnson now expects annual sales of between $81 billion and $81.4 billion, lifted from a prior range of $80.5 billion to $81.3 billion, due to an increase in expected operational growth to a range of 5.5 percent to 6 percent. The company predicts full-year earnings per share of between $8.13 and $8.18, hiked from previous guidance of $8.07 to $8.17. Analysts predict annual earnings of $8.15 per share on $81.2 billion in revenue.

Pipeline update:

Johnson & Johnson recorded an impairment charge of $630 million in the quarter after halting Phase IIb studies of the antiviral therapy AL-8176. The company suspended trials of the drug for the treatment of respiratory syncytial virus late in the second quarter, with further information received in the third quarter prompting a reassessment, which could lead to further charges. Johnson & Johnson gained rights to the therapy as part of its $1.75-billion takeover of Alios BioPharma in 2014.  

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