Johnson & Johnson beats third-quarter earnings expectations, raises guidance

Johnson & Johnson on Tuesday reported third-quarter earnings and revenue that beat Wall Street’s expectations, led by higher sales in its medical-device unit and higher demand for some of its drugs.

J&J reported an adjusted earnings of $2.20 per share, higher than the $1.98 per share projected by analysts surveyed by Refinitiv. The company generated $21.08 billion in revenue, higher than the $20.20 billion expected and up from $20.72 last year.

The company also raised its full-year guidance, expecting adjusted earnings of $7.95 to $8.05 from per share from $7.75 to $7.95 per share. It also raised its sales forecast to between $82.0 billion and $82.8 billion from $79.9 billion and $81.4 billion.

J&J’s pharmaceutical business, which is working on a coronavirus vaccine, generated $11.4 billion in revenue, a 5% year-over-year increase. The vaccine’s late-stage trial was just paused after one of its participants reported an “adverse event,” Chief Financial Officer Joseph Wolk said in an interview on CNBC’s “Squawk Box” Tuesday morning.

The company’s consumer unit, which makes products such as Listerine, generated $3.5 billion in revenue, up 1.3% from a year earlier. Its medical device unit generated $6.1 billion, a 1.7% increase.

“Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID- 19 vaccine and to uphold the highest standards of transparency, safety and efficacy; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need,” J&J CEO Alex Gorsky said in a press release.

Last month, J&J began its phase three trial testing its potential coronavirus vaccine, becoming the fourth drugmaker backed by the Trump administration’s Covid-19 vaccine program Operation Warp Speed to enter late-stage testing.

J&J confirmed to STAT News Monday that the 60,000-patient clinical trial had been temporarily paused due to an unexplained illness in a study participant.

This is a developing story. Please check back for updates.