Johnson & Johnson wins 5-year, $60m supply DoD contract

Johnson & Johnson (NYSE:JNJ)’s Health Care Systems won a $60 million 5-year contract deal with the U.S. Department of Defense to supply dental and medical equipment.

The money comes from a fixed-price, indefinite-delivery/indefinite-quantity contract with no option periods. The contract was a competitive acquisition, and J&J was 1 of 121 responses received, according to a government release.

Johnson & Johnson will supply equipment to the Army, Navy, Air Force and Marine Corps through the contract, with operations in fiscal year 2016 through fiscal year 2021, according to the release.

Last month, Johnson & Johnson reported a street-beating 2nd quarter, with shares rising almost 3% in premarket trading. The company reported profits of $4 billion, or $1.43 per share, on sales of $18.5 billion for the 3 months ended June 30.

That amounts to a 11.5% bottom-line slide as sales grew approximately 3.9% compared with the same period in 2015.

After adjusting to exclude 1-time items, however, earnings per share were up for the company at $1.74, with sales of $4.9 billion. Analysts on Wall Street were looking for earnings per share of $1.68 and revenue of $17.9 billion, which the company handily topped.

The company’s medical device division saw sales of $6.4 billion, up 0.8% from last year. Domestic sales ticked up 1% while international sales rose a smaller 0.6%. Excluding the impact of acquisitions and divestures, worldwide sales increased 3.9%, domestic sales increased 1.9% and international sales increased 5.8%

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