Johnson & Johnson’s profit in the second quarter decreased by 35 percent compared to a year ago when COVID-19 reduced the demand for beauty products and medical devices.
The manufacturer of health care products in New Brunswick, New Jersey, earned $ 3.63 billion, or an adjusted $ 1.67 per share, as revenue fell 10.8 percent the year before to $ 1
Consumer health sales fell 7 percent from a year ago to $ 3.3 billion as consumers bought fewer skin health and beauty products while at home during the COVID-19 pandemic. Sales of medical devices tumbled 34 percent to $ 4.29 billion when elective surgeries were put in stock.
“Our results for the second quarter reflect the effects of COVID-19 and the lasting strength of our pharmaceutical business, where we saw continued growth in this environment as well,” said CEO Alex Gorsky in a statement.
Pharmaceutical sales, which accounted for 59 percent of revenue, were the only bright spot, climbing 2.1 percent from a year ago to $ 10.75 billion.
Going forward, Johnson & Johnson sees full-year adjusted earnings of $ 7.75 to $ 7.95 per share, up from the April forecast of $ 7.50 to $ 7.90. The company also projects year-on-year adjusted operational sales will drop as much as 0.8 percent or climb up to 1 percent.
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Johnson & Johnson shares rose 1.63 percent annually through Wednesday, surpassing the S&P 500’s 1.3 percent decline.