Investing.com - Johnson & Johnson (NYSE:JNJ) reported an impressive first quarter Tuesday, posting earnings that beat forecasts and revenue that topped expectations resulting in a lifted dividend, helped by increased demand for its pharmaceutical sales on the back of the coronavirus outbreak.
J&J announced earnings per share of $2.30 on revenue of $20.69 billion, compared with expectations of EPS of $1.99 on revenue of $19.86 billion.
The drug and consumer products company also boosted its dividend by 6.3% from $0.95 per share to $1.01 per share. This has offset a downbeat full-year outlook, with the company now expecting 2020 adjusted earnings per share of $7.50 to $7.90, compared with its prior estimate of $8.95 to $9.10.
“Johnson & Johnson is built for times like this, and we are leveraging our scientific expertise, operational scale and financial strength in the effort to advance the work on our lead COVID-19 vaccine candidate," said Alex Gorsky, Chairman and Chief Executive Officer. "We are committed to beginning production at risk imminently and bringing an affordable and accessible vaccine to the public on a not-for-profit basis for emergency pandemic use.”
J&J shares rose over 4% premarket on the back of these figures.
That said, "J&J’s business is facing many uncertainties in the current environment. While demand for certain consumer and pharma categories is rising due to coronavirus, its medical device business is suffering because COVID-19 has upended the whole surgery market," said Haris Anwar, analyst at Investing.com.
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