Johnson & Johnson's Stock Surges After Profit And Sales Beat, Raised Outlook

By Tomi KilgoreMarketsMarketWatch Pulse

Johnson & Johnson's stock jumped 3.1% in premarket trade Tuesday, after the consumer and pharmaceutical products giant reported second-quarter profit and sales that beat expectations and raised its full-year outlook. For the quarter ended in June, earnings fell to $6.02 billion, or $1.43 a share, from $6.25 billion, or $1.61 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at $1.74, above the FactSet consensus of $1.68. Revenue grew 3.9% to $18.48 billion, above the FactSet consensus of $17.98 billion, boosted by 8.9% growth in pharmaceutical sales. The company raised its 2016 EPS outlook to $6.63 to $6.73 from $6.53-$6.68 and its revenue outlook to $71.5 bln to $72.2 bln from $71.2 bln to $71.9 bln. "We saw notable strength in our Pharmaceuticals business due to the continued success of new products, and also achieved significant clinical milestones, advancing our robust pipeline," said Chief Executive Alex Gorsky. The stock has surged 20% year to date through Monday, while the Dow Jones Industrial Average has gained 6.4%.

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