Johnson & Johnson Falls 2.7% as 3.6% MedTech Growth Undercuts Raised Outlook
Updated
Updated · Trefis · Jul 16
Johnson & Johnson Falls 2.7% as 3.6% MedTech Growth Undercuts Raised Outlook
3 articles · Updated · Trefis · Jul 16
Summary
Johnson & Johnson shares fell 2.7% even after the company beat revenue and earnings estimates and lifted its full-year operational sales growth outlook to 6.5%-7.1%.
MedTech drove the selloff: operational sales rose just 3.6%, with the Abiomed heart-pump business down 2% and electrophysiology growth slowing to 3.1%, raising doubts about J&J's second growth engine.
Pharma remained strong enough to mask the weakness in headline results, with overall operational sales up 5.6%, TREMFYA sales surging 71%, and DARZALEX growing nearly 18% to more than $4 billion.
The market's concern is that J&J's two-part growth story is becoming lopsided, with stronger drug sales offsetting a MedTech slowdown that investors had expected to provide steadier diversification.