Johnson & Johnson’s (JNJ) first-quarter profit got a boost from strong sales of medical devices, the consumer healthcare company has reported.
Johnson & Johnson, whose financial results are viewed as a bellwether for the American healthcare sector, announced earnings per share of $2.71 U.S. versus $2.64 U.S. that was expected among analysts.
Revenue in the quarter came in at $21.38 billion U.S. compared to $21.40 billion U.S. that was forecast on Wall Street. Sales rose 2% from a year earlier.
The company’s Medtech division that makes devices for surgeries, orthopedics and vision saw a rebound in sales during Q1 as demand grows for nonurgent surgeries among elderly adults.
Johnson & Johnson’s medical device business generated sales of $7.82 billion U.S. in Q1, up 4% from a year ago.
The company has made growing its medical device business a priority, recently announcing a $13.10 billion U.S. acquisition of heart device firm Shockwave Medical (SWAV).
Johnson & Johnson bought two other heart device companies over the last two years, spending $16.60 billion U.S. to buy Abiomed and $400 million U.S. to buy privately held Laminar.
Along with its latest earnings print, Johnson & Johnson also said that it will increase its quarterly dividend payment to $1.24 U.S. a share, up 4.2% from $1.19 U.S. per share previously.
This marks the company’s 62nd year of consecutive dividend increases, making it a “dividend king,” which is a company that has raised its dividend for 50 years or longer.
The new dividend is payable to shareholders on June 4 of this year.
Looking ahead, Johnson & Johnson narrowed its full-year guidance, saying it now expects sales of $88 billion U.S. to $88.40 billion U.S.
That compares to a previous forecast of $87.80 billion U.S. to $88.60 billion U.S. in revenue.
The company also now expects earnings of $10.57 U.S. to $10.72 U.S. a share, compared to previous guidance for $10.55 U.S. to $10.75 U.S. in per share earnings.
Johnson & Johnson’s stock has declined 11% over the last 12 months to trade at $147.59 U.S. a share.
