Johnson & Johnson’s recent investments in medical devices helped boost sales, but the company’s total revenue in the first quarter of the year failed to beat Wall Street expectations.
Its stock fell 2%to about $144 on Tuesday, following the healthcare giant’s recent quarterly earnings report.
The company’s medical device segment experienced the biggest growth in the company during the three months ending March 31, up 4.5% year-over-year to $7.8 billion. Johnson & Johnson said the growth was primary driven by cardiovascular products made by Abiomed, a company it bought in 2022 for $16.6 billion.
Last month, the company announced it was buying another heart device maker, Shockwave Medical for $13 billion.
These investments come as non-urgent surgeries are on the rise after being put on hold during ht pandemic.
Still, this past quarter’s demand was not enough to beat Wall Street estimates of about $7.9 billion, according to a consensus estimate from analysts surveyed by FactSet.
The company’s pharmaceutical unit faired a little better reaching $13.7 billion in sales, slightly outperforming analysts’ expectations of $13.4 billion.
Johnson & Johnson’s first quarter, by the digits
Johnson & Johnson’s net income skyrocketed over 1000% in in the three months ending March 31, to $5.35 billion from a loss of $491 million in the same period the prior year.
The company’s revenue was up 2% year-over-year to $21.38 billion in the first quarter, from $20.8 billion, slightly below expectations of $21.39 billion.
Its earnings per share came to $2.71, beating Wall Street expectations of $2.64 according to FactSet.