Though Johnson & Johnson (NYSE: JNJ) posted growth in its second quarter earnings, the profits were less-than-expected, giving mixed signals to the medical device industry's overall health. But as experts and analysts crunch the numbers, J&J CFO Dominic Caruso isn't worried.
"It's good to look at these businesses over longer periods and not just an individual quarter," Caruso said on a conference call. Sutures, for example, are showing stable growth, and while they are not back at their peak levels, they are a sign of the overall economy's health. Overall sales in devices grew 4.1 percent to $6.13 billion, markedly lower than analysts' expections of 7 percent growth.
Orthopedics in particular have felt the pressure from hospitals that are trying to cut costs. Stocks of rivals in this segment traded down after J&J's announcement.
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