The stock price of Johnson & Johnson (NYSE:JNJ) has risen by around 3% today following the release of its second quarter results. The company delivered sales during the period of $20.8 billion, which is 10.6% higher than in the same period of the previous year.
Operational sales results increased by 8.7%, while the positive impact of currency changes was 1.9%. Domestic sales moved 9.4% higher, with international sales rising by 11.8%.
However, excluding the net impact of acquisitions and divestitures, worldwide sales were 6.3% higher, while the company’s domestic sales increased by 5.7% and international sales were 6.8% up.
Johnson & Johnson was able to record double-digit growth in its pharma business. It also saw positive momentum in its Medical Devices business, with its performance being aided by the continued growth of its strategic new launches. Further progress in this area is expected to take place, with the company investing heavily in innovation and in meeting the needs of its customers.
In terms of profitability, EPS was $2.10 for the quarter on an adjusted basis. This is an increase of 14.8% versus the second quarter of 2017 and was slightly higher than market expectations of $2.07. This could be a reason why the company’s stock price has made gains so far today.
Looking ahead, Johnson & Johnson has updated its sales guidance for the full year. It is expected to be between $80.5 billion and $81.3 billion, with adjusted EPS now due to be between $8.07 and $8.17.
In my view, the company continues to perform relatively well. It seems to be making good progress with its overall strategy, with it delivering strong domestic and international growth during the period. With the prospect of improving sales and profit performance for the full year, I think that the company’s stock price could make further gains over the medium term.