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 669 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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