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2 Large Health Care Companies Announce 1st-Quarter Earnings

- By Alberto Abaterusso

Two large health care companies released quarterly earnings results before the opening bell on Tuesday.

Shares of Johnson & Johnson (JNJ) jumped 1.3% to $138.30 in premarket trading after beating expectations by 6 cents on non-GAAP earnings of $2.1 per share for the first quarter of fiscal 2019. The result was 1.9% higher year-over-year.


GAAP earnings were $1.39 per share in the quarter, a 13.1% decline.

Posting $20.02 billion, revenue came in flat, beating consensus estimates by $470 million. The consumer segment contributed 16.6% or $3.32 billion in revenue, the pharmaceuticals business segment 51.2% or $10.2 billion, and the medical devices business segment 32.2% or $6.4 billion.

The New Brunswick, New Jersey-based global drug manufacturer noted the following changes in its key product sales. Remicade declined 20.6% to $1.1 billion, Simponi/Simponi Aria went up 1% to $524 million, Stelara increased 32.4% to $1.41 billion. Darzalex jumped 45.5% to $629 million, Xarelto went down 6.3% to $542 million, Zytiga fell 19.6% to$679 million and Imbruvica increased 33.5% to $784 million.

Also, Invega sustennn/Xeplion/Trinza/Trevicta increased 13.5% to $790 million and Prezista/Prezcobix/Rezolsta/Symtuza jumped 9.5% to $523 million.

For full fiscal 2019, the company targets revenue of $80.4 billion to $81.2 billion and non-GAAP earnings per share of $8.53 to $8.63.

Shares of Johnson & Johnson traded around $136.52 at close Monday for a market capitalization of $363.5 billion. The share price increased 4% for the 52 weeks through April 15 to above the 200, 100- and 50-day simple moving average lines. The closing price on Monday was 15.1% off the 52-week low of $118.62 and 9.1% below the 52-week high of $148.99.

The 14-day Relative Strength Indicator is 60 suggesting the stock is neither overbought nor oversold.

Shares of UnitedHealth Group Inc. (UNH) were 3.36% higher at $237.94 in premarket trading after beating expectations by 13 cents on non-GAAP earnings of $3.73 per share for the first quarter of fiscal 2019. The result was 22.7% higher than the prior-year quarter.

GAAP earnings were $3.56 per share in the quarter, or a 24% increase.

Revenue was $60.31 billion, or 9.3% higher, beating expectations by $590 million. Premiums contributed 79% or $47.5 billion in revenue, products 13.4% or $8.07 billion, services 7.32% or $4.3 billion and investment and other income 0.7% or $405 million.

The Minnetonka, Minnesota-based health care plans company also recorded that the UnitedHealthcare business segment increased 7.6% to nearly $49 billion and Optum business segment went up 11.7% to approximately $26.4 billion.

Amid the most important projections for the full fiscal year 2019, UnitedHealth Group Inc. expects non-GAAP earnings to range between $14.5 and $14.75 per share versus consensus estimates of $14.65 per share, and GAAP earnings to range between $13.80 and $14.05 per share.

Shares of UnitedHealth Group Inc. traded around $230.2 at close Monday for a market capitalization of $217.7 billion. The share price was flat for the past year through April 15. The share price is below the 200, 100- and 50-day simple moving average lines. The closing price on Monday was 4.3% off the 52-week low of $220.77 and 25.1% below the 52-week high of $287.94.

The 14-day Relative Strength Indicator is 33 suggesting the stock is approaching oversold levels.

Disclosure: I have no positions in any security mentioned.

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This article first appeared on GuruFocus.