Johnson & Johnson (JNJ - Free Report) , 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. Recently, allegations that its talc/baby powders contain asbestos which causes the users to develop ovarian cancer have been an overhang on the stock’s price.
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.
J&J’s performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters is 1.65%. Estimates for 2019 have gone up slightly 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 fourth quarter earnings - the company reported EPS of $1.97 while our consensus called for EPS of $1.95.
Revenues Beat: Revenues also beat expectations. Johnson & Johnson posted revenues of $20.39 billion, compared to our consensus estimate of $20.1 billion.
Key Statistics: Pharmaceutical segment sales rose 5.3% year over year to $10.19 billion, reflecting 7.2% operational growth and 1.9% negative currency impact as sales rose in both domestic and international markets.
Issues 2019 Outlook: J&J issued earnings and sales guidance for 2019.
J&J expects 2019 adjusted earnings per share in the range of $8.50 - $8.65. The guidance range reflects an operational growth rate between 5.7% and 7.6%. The Zacks Consensus Estimate for EPS for 2019 was $8.64.
Revenues are expected in the range of $80.4 to $81.2 billion which fell short of the Zacks Consensus Estimate for revenues of $82.61 billion.
The sales guidance reflected operational constant currency sales growth in the range of 0% to 1%. Organically, excluding the impact of acquisitions and divestitures, sales growth is expected to be in the range of 2% to 3% on an operational basis.
Stock Price Impact: Shares rose 0.6% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Johnson & Johnson (JNJ - Free Report) , 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. Recently, allegations that its talc/baby powders contain asbestos which causes the users to develop ovarian cancer have been an overhang on the stock’s price.
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.
J&J’s performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters is 1.65%. Estimates for 2019 have gone up slightly 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 fourth quarter earnings - the company reported EPS of $1.97 while our consensus called for EPS of $1.95.
Revenues Beat: Revenues also beat expectations. Johnson & Johnson posted revenues of $20.39 billion, compared to our consensus estimate of $20.1 billion.
Key Statistics: Pharmaceutical segment sales rose 5.3% year over year to $10.19 billion, reflecting 7.2% operational growth and 1.9% negative currency impact as sales rose in both domestic and international markets.
Issues 2019 Outlook: J&J issued earnings and sales guidance for 2019.
J&J expects 2019 adjusted earnings per share in the range of $8.50 - $8.65. The guidance range reflects an operational growth rate between 5.7% and 7.6%. The Zacks Consensus Estimate for EPS for 2019 was $8.64.
Revenues are expected in the range of $80.4 to $81.2 billion which fell short of the Zacks Consensus Estimate for revenues of $82.61 billion.
The sales guidance reflected operational constant currency sales growth in the range of 0% to 1%. Organically, excluding the impact of acquisitions and divestitures, sales growth is expected to be in the range of 2% to 3% on an operational basis.
Stock Price Impact: Shares rose 0.6% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on JNJ - FREE