What are the main factors behind an increase of 42% in Johnson & Johnson’s profit?

[Mark Michaels]

[Bryan Reynolds]

The American medical device company Johnson & Johnson (NYSE:JNJ) reported a 42% profit increase in the second quarter, as all of the company’s units have reported better-than-expected quarterly results.

Although the sales in its medical device unit are significantly down, the company has boosted its full-year forecast today. The gamechanger was foreign medicine sales, which rocketed 6.5% to $4.75bn. This result boosted the total revenue to $20.56bn, beating consensus estimates.

The New Jersey-based company’s pharmaceutical units, which contributes 50% of J&J’s total revenue, reported revenue of $3.54bn, higher than consensus estimates of $3.52bn. Its pharmaceutical business is famous for psoriasis drugs such as Stelara and Tremfya.

J&J’s consumer health products unit, the maker of Aveeno body care, Tylenol and Neutrogena, posted revenue of $3.54bn, beating the expected $3.52bn.

“If you look at our earnings growth this year, we’re maintaining it, it’s two times the rate of sales growth,” said Joseph Wolk, Johnson & Johnson’s CFO.