April 14, 2020 / Sergei Klebnikov, Forbes Staff
TOPLINE – Shares of pharmaceutical and consumer goods giant Johnson & Johnson jumped on Tuesday after the company raised its dividend—even after lowering its forecast for the rest of the year—and beat revenue and profit estimates thanks to higher demand during the coronavirus pandemic.
KEY FACTS
- The company saw its first quarter profits surge amid higher demand for over-the-counter medicine and packaged consumer goods during the ongoing coronavirus health crisis.
- Johnson & Johnson reported profits of $2.30 per share—higher than the $2 per share forecast by analysts, and sales rose 3.3% from a year ago to $20.7 billion, compared to the $19.5 billion analysts expected.
- The company said that sales of consumer products, including Tylenol and Zyrtec, rose nearly 10% as consumers sought to use over-the-counter medicines to reduce fever and other symptoms associated with coronavirus.
- The stock also jumped on news that the company raised its quarterly dividend by 6.3%, from 95 cents per share to $1.01 per share—a pleasant surprise for investors who have been bracing for the impact of Covid-19 on corporate earnings reports.
