S&P Drug Titan J&J Announces Its Surprise Spinoff Plans

Core Insights - Johnson & Johnson reported adjusted income of $2.80 per share on nearly $24 billion in third-quarter sales, exceeding analyst expectations of $2.76 per share and $23.76 billion in sales [1][2] - The company plans to separate its orthopedics business into a standalone entity named DePuy Synthes, allowing J&J to focus on oncology, immunology, neuroscience, cardiovascular, surgery, and vision [2] - J&J raised its sales outlook for the year to $93.5 billion to $93.9 billion, up from the previous guidance of $93.2 billion to $93.6 billion, while maintaining its adjusted profit forecast of $10.80 to $10.90 per share [2][3] Financial Performance - In the same quarter last year, Johnson & Johnson had earnings per share of $2.42 and sales of $22.47 billion, indicating a year-over-year increase in both metrics [1] - Analysts had projected earnings of $10.85 per share and sales of $93.48 billion for the current year [3] - J&J stock has increased over 30% this year and is currently about 12% extended from its breakout point of 169.99 established in early August [3]