J&J’s stock falls though third-quarter earnings beat expectations

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Shares of Johnson & Johnson were down 0.9% in premarket trading on Tuesday though the health care giant beat expectations for the quarter. It had net earnings of $3.5 billion, or $1.33 per share, in the third quarter of 2020, compared with $1.7 billion, or 66 cents per share, in the third quarter of 2019. Adjusted earnings per share for the quarter were $2.20, against a FactSet consensus of $1.98. The company had $21.2 billion in revenue for the quarter, up from $20.7 billion in the same period a year ago, against a FactSet consensus of $20.2 billion. The growth was driven primarily by J&J’s pharmaceuticals business, which reported $11.4 billion in revenue for the third quarter, up from $10.8 billion in the same quarter last year. Its medical device business, which has been negatively impacted by delayed or canceled medical procedures and surgeries as a result of the COVID-19 pandemic, had $6.1 billion in revenue for the quarter, down from $6.4 billion in the same quarter a year ago. J&J raised its sales outlook for the year to $81.2 billion to $82.0 billion, with adjusted EPS of $7.95 to $8.05. It had previously said its 2020 adjusted EPS would be in the range of $7.75 to $7.95. Stat News on Monday reported that J&J had paused its late-stage study with 60,000 participants for its COVID-19 vaccine candidate over an unexplained illness in one of the 60,000 participants. J&J’s stock is up 4.1% for the year, while the S&P 500 has gained 9.4%.
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