Johnson & Johnson (JNJ) reported third-quarter results that topped analyst estimates on both the top and bottom lines. The healthcare company also raised its full-year guidance. The report was the company's first earnings release since it spun off its consumer health business, Kenvue (KVUE).

Yahoo Finance Health Reporter Anjalee Khemlani breaks down what stood this quarter, including the company's drug sales outlook.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

SEANA SMITH: Johnson and Johnson shares on the move after beating the street's expectations. They also raised their 2023 revenue outlook. But you're still looking at shares of just about 1% ahead of the open its first quarterly results, since separating from the consumer health spinoff Kenvue.

Now following that split, the company lowered its sales and profit guidance for the year. So we saw a bit of a reversal here within this announcement. But when it comes to some of these numbers here, Brad, a lot to digest in terms of what we're hearing from Johnson and Johnson, how they're positioned among the broader pharmacy industry. This does mark, like I said, changes first quarterly results since that spin off. So we've seen a little bit of a refocus here for this side of the division.

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The 2%, though, miss in device sales, that will likely be one of the focal points in this report. We're seeing a bit of pressure here ahead of the open. That could potentially be why we know a lot of analysts took issue with that 2% miss, what that means here in terms of Johnson and Johnson's device sales business going forward.

And then also, just the fact that this is largely viewed as a bellwether here for the broader sector. So yes, encouraging that they did raise their full-year guidance. Yet we're not seeing too much reaction from the street, with shares still off just about 1%.

BRAD SMITH: Yeah. The shares are down by about 11% over the course of 2023 thus far. So they really had a lot to prove, coming into this resort. You were mentioning some of the segments there. And of course, remember, as they had even mentioned within this press release as well.

This is a company that now has that much more sharpened focus on innovative medicine and medtech solutions, really trying to focus on that spectrum of health care, and really putting all of their eyes and attention on whatever they can do to chart the next medical breakthrough. Now what that looks like still remains to be seen here. But as of right now, across those segments for medtech at least right now, you saw that year-over-year move higher by about 10% in that particular part of the business. Innovative medicine.

Their other major business, which makes up the lion's share of their total revenue, brings in about, at least as of this quarter, about $13.9 billion of that [? 21.3. ?] And so, that saw growth of about 5.1% year-over-year for the company. So we'll keep a close eye on shares. Of course, that call taking place this morning as well here. But we'll continue to see if they can chart a turnaround story here as well for J&J shares, given the declines we've seen over the course of 2023.