Medical device makers slip in sympathy with J&J's MedTech miss
XLV•Shares of major medical device makers fell 1% to 4% after Johnson & Johnson reported MedTech sales of $8.6 billion, below analysts’ estimate of $8.71 billion.
1. Device stocks fall
Abbott Laboratories, Boston Scientific, Medtronic, Intuitive Surgical, Stryker and Zimmer Biomet shares fell between 1% and 4% after Johnson & Johnson reported MedTech sales rose 2.5% to $8.6 billion, below analysts’ estimate of $8.71 billion. J&J shares fell 4.7% to $251.33.
2. International pressures
J&J CFO Joe Wolk said the Middle East conflict, austerity measures in Europe and pricing in China weighed on international results, “but maybe in a little bit more pronounced way.” Analysts cautioned that it was “hard to generalize J&J’s results to the rest of the sector,” while noting that China’s volume-based procurement pricing program could affect Medtronic and possibly Intuitive Surgical.
