(Reuters) – Johnson & Johnson (JNJ.N) on Tuesday said it expects its medical device business to begin recovering in the fourth quarter as elective medical procedures delayed by the coronavirus pandemic start to resume.
The U.S. healthcare conglomerate lowered its full-year 2020 forecast due to the hit to that business, with procedures like hip and knee replacements on hold. The division accounts for nearly 30% of total sales.
However, investors appeared to take heart that J&J did not simply withdraw its 2020 forecasts over coronavirus uncertainty as the pandemic causes massive business disruptions around the world. It also raised the quarterly dividend to $1.01 per share, and its shares rose 4.4% to $145.87.
J&J’s 2020 adjusted earnings forecast of $7.50 to $7.90 per share – down from its prior view of $8.95 to $9.10 – assumes any return of the coronavir