SWAV - Johnson & Johnson Shows Focus On Strengthening Its Business Upon Its Consumer Health Unit Spinoff | Benzinga
On Tuesday, Johnson & Johnson (NYSE: JNJ) delivered a rather mixed first quarter report. Adjusted earnings surpassed estimates as sales in its medical devices business surged, while revenue was almost in line with estimates. First quarter results came shortly after JNJ’s expansion in the cardiovascular space with the $13.1 billion acquisition of heart device firm Shockwave Medical Inc (NASDAQ: SWAV).
First Quarter Highlights
For the period ended in March, the healthcare company posted a revenue of $21.38 billion, almost in line with LSEG’s estimate of $21.4 billion. During the first three months of the year, revenue rose more than 2% YoY. JNJ reported a net income of $5.35 billion, or $2.20 per share, with adjusted income amounting to $2.71, surpassing LSEG’s estimate of $2.64. It is quite a difference compared to last year’s comparable quarter when JNJ posted a net loss due to costs related to its controversial talc baby powder liabilities that led to the spinoff of its consumer health unit. This quarter’s success is owed to the thriving medical devices business that brought $7.82 to the revenue table, rising more than 4% on a YoY basis, with JNJ attributing the YoY rise to the acquisition of Abiomed.
On a less bright note, JNJ reported weak sales of vision care products and surgical devices. Vision products unit reported ...