Total earnings for 83.1% of the total healthcare market capitalization are up 14.7% on revenue growth of 8.1%. The growth rates seem unimpressive when compared with some of the other sectors. Earnings and revenue beat ratios of 88.9% and 75%, respectively, are also not great either.

Among the most notable players, Johnson & Johnson (JNJ – Free Report) was the first major drug company to report earnings on Apr 17, followed by Eli Lilly and Company (LLY – Free Report) and Bristol-Myers Squibb Company (BMY – Free Report) on Apr 24 and Apr 26, respectively. Other major U.S. drug companies — Merck (MRK – Free Report) and Pfizer (PFE – Free Report) — reported on May 1. These industry bigwigs came up with earnings or revenue beat or both.

Earnings in Focus

Johnson and Johnson

The world’s biggest maker of healthcare products continued its long streak of earnings beat. Earnings per share came in at $2.06, 5 cents ahead of the Zacks Consensus Estimate and 12.6% higher than the year-ago quarter. Revenues grew 12.9% year over year to $20.01 billion and edged past the estimated $19.4 billion. Johnson & Johnson raised its revenue guidance from $80.60-$81.40 billion to $81.0-$81.8 billion but maintained its earnings per share outlook of $8.00-$8.20, which reflects growth of 6.8%-9.6%.

Pfizer

The U.S. drug giant surpassed earnings estimates but lagged on revenues. Earnings per share of 77 cents came in 3 cents above the Zacks Consensus Estimate while revenues of $12.9 billion fell shy of the estimated $13.1 billion. On an annual basis, earnings per share and revenues rose 12% and 1%, respectively. For 2018, Pfizer expects revenues in the range of $53.5-$55.5 billion and earnings per share of $2.90-$3.00.

Merck

Merck also beat earnings estimates but missed on revenues. Earnings per share came in at $1.05, surpassing the Zacks Consensus Estimate of 99 cents and improving 19.3% from the year-ago quarter. Revenues inched up 6% year over year to $10.04 billion and were below the estimated $10.12 billion. Merck increased its 2018 revenue guidance to $41.8-$43.0 billion from $41.2-$42.7 billion and earnings per share guidance to $4.16-$4.28 from $4.08-$4.23.