J&J upbeat on 2023 as devices rebound post-COVID, shares jump

investing.com:

By Bhanvi Satija and Patrick Wingrove

(Reuters) -Johnson & Johnson on Thursday expressed optimism for strong growth this year, saying it expected to surpass profit estimates with joint replacement and other surgeries rebounding after COVID-19 and inflation tempering, as its shares rose 6%.

J&J (NYSE:JNJ) also told investors it was banking on strong demand for its cancer drugs, with protections in place for its blockbuster arthritis drug also bolstering its pharmaceutical portfolio.

Shares of the healthcare conglomerate were up 6.2% in midday trade to $168.61. Shares of other medical device makers such as Medtronic (NYSE:MDT) and Abbott Laboratories (NYSE:ABT), which also posted upbeat results, gained more than 3%.

J&J said it now expects adjusted 2023 profit of $10.70 to $10.80 per share, above estimates of $10.65 per share and its prior forecast of $10.60 to $10.70 per share.

The drug and device maker also posted better-than-expected second-quarter earnings of $2.80 per share, compared with analysts' expectations of $2.62.

It had been «responsibly cautious» in its guidance earlier this year, but growth across the business gave J&J confidence to raise its full-year outlook, Chief Financial Officer Joseph Wolk told Reuters.

«The qualifiers are now off, and if you look across our entire portfolio — just strength across the board,» Wolk said in an interview, noting that despite concerns last quarter, inflation had steadied.

J&J is trying to bolster growth at its pandemic-hit medical devices business while placing huge bets on its newer cancer drugs and seeking to counter a potential slowdown in sales of its Stelara arthritis drug when biosimilars hit as soon as 2025.

Second-quarter sales for the company's medical device