J&J’s Device Unit Fails to Meet Sales Expectations

The New Brunswick, NJ-based company beat Wall Street Expectations in nearly every unit – except for medical devices in 3Q18.

Johnson & Johnson beat Wall Street expectations in 3Q18, fueled mostly by its pharmaceutical unit, but that doesn’t mean every business from the New Brunswick, NJ-based company is firing on all cylinders. J&J noted its medical device unit was a bit behind and actually missed expectations.

Total medical device sales came in at about $6.59 billion missing expectations of $6.64 billion.

Overall, J&J reported third-quarter net income of $3.93 billion, or $1.44 per share, up from $3.76 billion, or $1.37 per share a year earlier. The performance pushed the company to adjust its overall outlook to an earnings per share of $8.13 to $8.18. This was up from prior guidance of $8.07 to $8.17. Johnson & Johnson said it expected sales of $81 billion to $81.4 billion which differs from earlier guidance of $80.5 billion to $81.3 billion.

“We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our Pharmaceutical business, accelerating sales momentum in our Consumer business and consistent progress in our Medical Devices business,” Alex Gorsky, Chairman and CEO for J&J, said in a release. “I’m confident that with our collaborative and inspired J&J colleagues around the world, unique broad-based business model and strategic investments in innovation, we are well positioned for success today and into the future.”

By Omar Ford | MD+DI

Image Credit: Johnson & Johnson

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About Peter Coffaro 522 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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