Johnson & Johnson Earnings Climb on Medtech Growth

Pharmaceutical giant Johnson & Johnson (J&J) revealed a jump in its second-quarter revenue and adjusted earnings, outperforming Wall Street's predictions. The result was attributed to strong growth in its medical technology (medtech) sector.

Often seen as a bellwether for the wider health industry, J&J's financial returns are closely scrutinized. Adding to the good news, the company raised its full-year financial outlook.

Despite investor concerns around the wave of lawsuits alleging that the firm's talc-based baby powder and other products caused cancer, J&J's quarterly figures continue to inspire confidence. The company posted a net income of $5.14 billion or $1.96 per share, an increase from the $4.8 billion or $1.80 per share from the same time last year.

J&J attributed the surge in growth to several areas within its portfolio. Electrophysiological products, used in assessing the heart's electrical system, played a significant role. Additionally, its wound closure products and devices for orthopedic trauma made a strong contribution.

Its medtech arm, offering devices for surgeries, orthopedics, and vision, has seen a bounce back in demand for non-urgent surgeries among older adults. Such procedures had been postponed during the pandemic.

Reinforcing its status as an economic indicator for the larger health sector, J&J announced a sales growth of 6.3% for the quarter, compared to the same period in the previous year.

Despite a year-to-date drop of over 10% in J&J's stock value, news of the positive earnings sent the shares up by around 2% in Thursday's premarket trading. Currently, the company's market value stands at approximately $412 billion.