Johnson & Johnson (JNJ) is posting a 30% jump in third-quarter profits, beating expectations and potentially giving a dose of strength to health care exchange traded funds (ETFs).
Higher sales of consumer products and medical devices is boosting company profit, and the absence of a $745 million restructuring charge has helped this company beat the odds, reports Linda A. Johnson for the Associated Press.
The New Jersey-based company is a maker of baby-care items as well as contraceptives, medical devices and prescription drugs. The reported net income was at $3.31 billion , while revenue rose 6.3% to $15.9 billion. The revenue increase benefited from the weak dollar.
Meanwhile, company executives attempted to reassure investors with a detailed update on J&J’s drug pipeline, saying it is the most robust in company history, and that J&J is on track to seek approval for seven to 10 new drugs from this year through 2010.
Sales in the consumer product division jumped 13%, driven by the successful launch in January of the allergy drug Zyrtec. Women’s health and skin care products also added to the strength.
- Health Care Select Sector SPDR (XLV): down 22.3% year-to-date; Johnson & Johnson is 14.5% (black line)
- Pharmaceutical HOLDRs (PPH): down 24.4% year-to-date; Johnson & Johnson is 26% (green line)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.