Device Firm Earnings: Winners And Losers

Johnson & Johnson (JNJ): Dropping Cordis appears to be working out so far for the massive conglomerate, whose medical device units reported some good news amidst an ongoing restructuring, announced Jan. 16, that will cost about 3,000 jobs. (See [A#01160125002].) Excluding the net impact of acquisitions and divestitures, on an operational basis, Johnson & Johnson’s worldwide medical sales increased 2.5%, domestic sales increased 3.3% and international sales increased 2.0%. Including the impact of divestitures, J&J’s overall 2015 medical devices sales were $25.1 billion for all of 2015, representing an operational revenue decline of 1.4%, driven mainly by a 1.7% operational revenue drop in international markets. During its Jan. 26 earnings call, the company cited strong sales in surgery, orthopedics, electrophysiology and vision care, partially offset by the divestiture of the Cordis business in March. (See Also see "Cardinal Health Builds On Generic Device Strategy With Cordis Deal" - Medtech Insight, 2 March, 2015..)

ResMed Inc. (RMD): The sleep and respiratory device-maker appears to be containing the damage caused by the negative findings...