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J&J (JNJ) Beats on Q1 Earnings & Sales, Ups 2018 Sales View


Johnson & Johnson JNJ, the bellwether of healthcare companies, has a strong presence in the pharmaceutical, medical devices and consumer care markets across the world. This New Jersey-based company is well known for its baby-care products and brands like Tylenol in addition to drugs like Remicade and Concerta.

However, like many of its peers, JNJ is facing generic competition and pricing pressure for some of the products in its pharmaceutical segment.

In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential as well as the performance of new products apart from the usual top-and bottom-line numbers.

JNJ has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters, with an average positive surprise of 3.09%. Estimate movement has been stable over the past 7 days.

Currently, JNJ has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: JNJ beat on first quarter earnings – the company reported EPS of $2.06 while our consensus called for EPS of $2.01.

Revenues Beat: Revenues also slightly beat expectations. Johnson & Johnson posted revenues of $20.0 billion, compared to our consensus estimate of $19.48 billion.

Key Statistics: Pharmaceutical segment sales rose 19.4% year over year to $9.84 billion, reflecting 15.1% operational growth and 4.3% positive currency impact as sales rose in both domestic and international markets.

Ups 2018 Sales Outlook: J&J maintained the previously issued earnings guidance for 2018 while increasing the sales range.

J&J still expects 2018 adjusted earnings per share in the range of $8.00 – $8.20, reflecting an operational growth rate between 6.8% and 9.6%.

However, it expects revenues in the range of $81.0 to $81.8 billion higher than $80.6 billion to $81.4 billion expected previously, reflecting operational constant currency sales growth rate in the range of 4.0% to 5.0% (previously 3.5% to 4.5%).

The Zacks Consensus Estimate for earnings per share and revenues were $8.11 and $81.27 billion, respectively.

Stock Price Impact: Shares rose 1.3% in pre-market trading.

Johnson & Johnson Price and EPS Surprise

Johnson & Johnson Price and EPS Surprise | Johnson & Johnson Quote

Check back later for our full write up on this JNJ earnings report later!

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