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Johnson & Johnson reported strong second-quarter numbers last week, with increased revenue and profit thanks to a surge in heart procedures and higher demand for cold and flu medicines. The share price popped 6% on the day.
Sales rose 6.3% to $25.53 billion, boosted by a sharp rise in the US as supply chain constraints eased. The diversified healthcare giant overcame hospital staffing shortages, helping the company increase its projected overall sales for the full year to as much as $99.3 billion. Net profit was up 6.9% to $5.24 billion.
J&J saw a 23.5% increase in sales of products used to treat irregular heart rhythms. This included improvements from the China devices business where Covid restrictions had previously hindered operations.
Hospital procedures, like knee and hip replacements, are on the rise, benefiting companies supplying the necessary parts, including J&J's MedTech unit (acquired some years ago, called Synthes).
The company's biggest unit, pharmaceuticals, saw revenue gain 3.1% as strong sales of cancer drugs like Darzalex offset declines in vaccines and other infectious disease products.
The company's consumer-health unit has now been separated into a new listed company called Kenvue. It is known for products like Imodium, Tylenol, and Motrin, which also experienced a boost in sales. That will soon be spun off.
J&J's solid performance is a positive sign for the whole healthcare industry. We like the company as an anchor in every offshore portfolio - do not expect fireworks here, rather consistency and a solid dividend every quarter.
