Johnson & Johnson profit dives 35% as coronavirus zaps sales of beauty products, medical devices

Medical device sales plunged 34%

Johnson & Johnson’s second-quarter profit slumped 35 percent from a year ago as COVID-19  slowed demand for beauty products and medical devices.

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The New Brunswick, New Jersey-based healthcare products manufacturer earned $3.63 billion, or an adjusted $1.67 a share, as revenue slid 10.8 percent year-over-year to $18.3 billion. Wall Street analysts surveyed by Refinitiv were anticipating adjusted earnings of $1.49 a share on sales of $17.6 billion.

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Consumer health sales fell 7 percent from a year ago to $3.3 billion as consumers bought fewer skin health and beauty products while sheltering at home during the COVID-19 pandemic. Medical device sales tumbled 34 percent to $4.29 billion as elective surgeries were put on hold.

"Our second-quarter results reflect the impact of COVID-19 and the enduring strength of our pharmaceutical business, where we saw continued growth even in this environment," CEO Alex Gorsky said in a statement.

Pharmaceuticals sales, which accounted for 59 percent of revenue, were the lone bright spot, climbing 2.1 percent from a year ago to $10.75 billion.

Looking ahead, Johnson & Johnson sees full-year adjusted earnings of $7.75 to $7.95 a share, up from its April forecast of $7.50 to $7.90. The company also projects full-year adjusted operational sales will slip as much as 0.8 percent or climb as much as 1 percent.

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Johnson & Johnson shares gained 1.63 percent year-to-date through Wednesday, outperforming the S&P 500's 1.3 percent decline.