Johnson & Johnson beat first-quarter profit estimates and raised its 2023 profit forecast on Tuesday, as cancer drugs such as Erleada and Crohn's disease treatment Stelara boost sales at its large pharmaceuticals unit.
Shares of the Dow component rose over 2% in premarket trading as sales across all the company's businesses, including medical devices and consumer health, beat estimates.
"Our position has changed to responsibly optimistic. We feel very good about 2023," Chief Financial Officer Joseph Wolk told CNBC.
Sales of its cancer treatments such as prostate cancer therapy Erleada and multiple myeloma drug Darzalex are closely watched by investors as the company targets about $60 billion in drug sales by 2025 at a time when older drugs face fierce competition.
The company reported sales of $2.44 billion for Stelara for the first quarter. Two analysts polled by Refinitiv had expected sales of $2.41 billion.
Darzalex sales of $2.26 billion met expectations, while Erleada sales of $542 million beat estimates of $500 million.
A recovery in medical procedures after being weighed down by hospital staffing shortages helped the medical device unit post sales of $7.48 billion, topping estimates of $7.31 billion.
Sales at its consumer health unit, which the company is in the process of spinning off, rose 7.4% to $3.85 billion, surpassing estimates of $3.62 billion, powered by price hikes to offset the impact from inflation.
Meanwhile, J&J swung to a loss of 3 cents per share for the first quarter due to a one-time charge related to the second bankruptcy filing for its talc liabilities.
The company has said it would take a charge of $6.9 billion related to the bankruptcy.
On an adjusted basis, the drugmaker posted first-quarter earnings of $2.68 per share, beating estimates of $2.50.
J&J expects to earn between $10.60 and $10.70 per share on an adjusted basis this year, compared with its prior forecast of between $10.45 and $10.65.
