Tomahawk, WI 10/16/2013 (BasicsMedia) – Johnson & Johnson (NYSE:JNJ) is a developer of a wide range of health care products. It researches, develops, manufactures and sells all these products. Around 500 companies that operate in 60 countries all over the world carry out its operations. More than that is the fact that the company’s products are sold in virtually every single country in the world. JNJ’s market cap of $253.43 billion makes it one of the largest global brands. Recently when it published its third quarter financial results, what I concluded after going through them is that JNJ is consistent.

Prescription Drugs Earn JNJ Highest Revenues

One area where JNJ has reported the best results is in prescription drugs. Its sales from selling prescription drugs have made up for the unpleasant results it has reported in other areas. It has not fared well in two major businesses, that is, consumer products and medical devices. The company is doing well in pharmaceutical division at the same time when it does not have to worry about patent expirations. It has thus been able to focus all its efforts in coming up with newer drugs and launching them in the market. The new drugs are bringing in a lot of revenue.

Global drug revenue has done quite well in the third quarter of 2013. There was a rise by almost 10% in the global drug revenue. JNJ obtained $7.04 billion in revenue purely from global drugs. I have noticed that the JNJ’s medical devices division had nothing good to report, since its revenue of $6.93 billion, was a drop of 2%. This is because patients are still quite hesitant where elective surgeries are concerned. The economy is still weak and patients opt to spend their monies on other things thus foregoing or abandoning elective surgeries until a latter date.

JNJ’s Net Earnings Quite Impressive

There was a slight improvement in the company’s net earnings compared to the same period last year. JNJ earned $2.97 billion in the third quarter of 2012, which is lower than the $2.98 billion it reported in 2013. JNJ still needs to find ways in which it can reduce its costs. This year, its costs related to legal matters and mergers amounted to $900 million. JNJ is still quite consistent when it comes to revenues. Whereas Wall Street had expected the company to rake in $17.46 billion in revenue, it went further by raising $17.58 billion in revenue.

JNJ is doing well, and there are many positives coming out from the company. I expect this to continue for a long time. Its strong financial base will help the company to move forward and bring in more revenue. It still needs to find ways of improving the revenue it earns from medical devices and products. It is imperative that JNJ finds ways of reducing or cutting down on costs. This is important if its value among investors is to be maintained. It is still quite attractive to investors and Wall Street who continue to show their confidence with JNJ in the stock market.

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