Why J&J stock slips despite strong Q3 earnings


Johnson & Johnson (NYSE: JNJ) reported better-than-expected third-quarter financial results on Tuesday. The drugmaker raised its full-year guidance, saying it now expects per-share earnings of between $7.95 and $8.05, up from its previous forecast in July of between $7.75 and $7.95.

“Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals,” J&J CEO Alex Gorsky said.

  • Earnings per share: $2.20 vs. $1.98 expected
  • Revenue: $21.08 billion vs. $20.2 billion expected

The stock fell more than 2% on Tuesday on concerns around the company pausing its covid-19 vaccine trials. Johnson & Johnson said on Monday it has temporarily paused its covid-19 vaccine candidate clinical trials due to an unexplained illness in a study participant. Johnson & Johnson’s COVID-19 vaccine is being developed by its Janssen Pharmaceuticals unit, and its phase-three trial involves 60,000 participants.

“Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety, and efficacy,” Alex Gorsky said.

J&J said it completed its $6.5 billion purchase of Momenta Pharmaceuticals on Oct. 1. That deal is expected to help the company expand its position in creating drugs that treat autoimmune diseases in which the immune system attacks cells and body tissue, including common chronic disorders such as rheumatoid arthritis and colitis.