Johnson & Johnson (NYSE:JNJ) has just reported earnings which once again continue to impress here in 2017 which we have described as a key year for the company. What we need to see are solid and stable results each quarter with the realization that JNJ is a slow growing, dividend paying machine. It is a great name to own in a retirement account long-term. The company continues to grow earnings but you have to pick your spots to enter. When the name dips you have to seize the opportunity, and so long as earnings continue to be strong, the name will just continue to edge higher.
Johnson & Johnson reported a higher-than-expected quarterly profit and raised its full-year forecast as the company gained from strong sales of its new cancer drugs.
Shares of J&J, part of the Dow Jones Industrial Average, were up 1.3 percent in premarket trading on Tuesday. Higher demand for its blood cancer drugs, Darzalex and Imbruvica, and the addition of high-margin treatments for rare diseases from its $30 billion acquisition of Actelion are expected to boost the company’s earnings in the coming quarters.
The company’s pharmaceutical business posted a 15.4 percent rise in sales in the third quarter. However, sales of J&J’s rheumatoid arthritis drug, Remicade, slipped in the latest quarter as the company faces rising threats from copycat versions of the blockbuster drug.
The company, which makes everything from Band-Aids to Neutrogena beauty products, said its results included the impact of the first full quarter of the acquisition of Actelion, which added 7.9 percent to worldwide operational sales growth.
J&J raised its 2017 profit forecast to a range of $7.25 to $7.30 per share from a range of $7.12 to $7.22 per share estimated previously. Revenue forecast is expected to range between $76.1 billion and $76.5 billion, compared with its earlier outlook of $75.8 billion of $76.1 billion.
Total revenue rose 10.3 percent to $19.65 billion. However, the company’s net earnings fell to $3.76 billion, or $1.37 per share, in the quarter from $4.27 billion, or $1.53 per share, a year earlier. Excluding special items, J&J earned $1.90 per share.
We love the name as a Dividend Growth Investment.