J&J raises sales forecast but keeps profit outlook unchanged; shares drop
Healthcare conglomerate reported better-than-expected profit in the first quarter
Johnson & Johnson said it plans to streamline its global supply chain and expects pretax savings of $600 million to $800 million by 2022
Johnson & Johnson raised its sales forecast for the year on Tuesday but kept its outlook for full-year profit unchanged, disappointing investors and sending its shares down 1.6 per cent.
The healthcare conglomerate reported better-than-expected profit in the first quarter, helped by strong demand for its cancer treatments.
Quarterly sales of its cancer treatments surged 45 per cent to $2.31 billion, accounting for nearly a quarter of its pharmaceutical unit’s revenue.
The company said it plans to streamline its global supply chain and expects pretax savings of $600 million to $800 million by 2022.
For the full year, J&J raised its sales forecast to a range of $81 billion to $81.8 billion, from $80.6 billion to $81.4 billion estimated previously.
Sales at J&J’s consumer products unit, which makes Band-Aids, Neutrogena beauty products and Tylenol, rose 5.3 per cent to $3.40 billion.
Net earnings fell to $4.37 billion, or $1.60 per share, in the latest quarter, from $4.42 billion, or $1.61 per share, a year earlier. Excluding items, the company earned $2.06 per share.
Total sales jumped 12.6 per cent to $20.01 billion, beating analysts’ estimates of $19.46 billion. – Reuters