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 Imbruvica.
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.
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 was 3.02%
Currently, JNJ has a Zacks Rank #4 (Sell), 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 third quarter earnings - the company reported EPS of $2.12 while our consensus called for EPS of $2.00.
Revenues Beat: Revenues also beat expectations. J&J posted revenues of $20.73 billion, compared to our consensus estimate of $20.08 billion.
Key Statistics: Pharmaceutical segment sales rose 5.1% year over year to $10.88 billion, reflecting 6.4% operational growth and 1.3% negative currency impact. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide pharmaceutical sales increased 6.4%, improving from 4.4% increase in the previous quarter. The sales increase was led by the company’s oncology drugs Imbruvica and Darzalex as well as psoriasis treatment, Stelara.
Ups 2019 Outlook: J&J raised its full-year earnings and sales outlook on continued strength of its business.
2019 adjusted earnings per share are expected in the range of $8.62 - $8.67, up from prior range of $8.53 - $8.63. The guidance range indicates growth of 5.4-6.0% (previously 4.3-5.5%). Revenues are expected in the range of $81.8-$82.3 billion, up from the previous range of $80.8-$81.6 billion, including currency impact.
Stock Price Impact: Shares rose more than 2.0% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
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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.
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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 Imbruvica.
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.
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 was 3.02%
Currently, JNJ has a Zacks Rank #4 (Sell), 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 third quarter earnings - the company reported EPS of $2.12 while our consensus called for EPS of $2.00.
Revenues Beat: Revenues also beat expectations. J&J posted revenues of $20.73 billion, compared to our consensus estimate of $20.08 billion.
Key Statistics: Pharmaceutical segment sales rose 5.1% year over year to $10.88 billion, reflecting 6.4% operational growth and 1.3% negative currency impact. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide pharmaceutical sales increased 6.4%, improving from 4.4% increase in the previous quarter. The sales increase was led by the company’s oncology drugs Imbruvica and Darzalex as well as psoriasis treatment, Stelara.
Ups 2019 Outlook: J&J raised its full-year earnings and sales outlook on continued strength of its business.
2019 adjusted earnings per share are expected in the range of $8.62 - $8.67, up from prior range of $8.53 - $8.63. The guidance range indicates growth of 5.4-6.0% (previously 4.3-5.5%). Revenues are expected in the range of $81.8-$82.3 billion, up from the previous range of $80.8-$81.6 billion, including currency impact.
Stock Price Impact: Shares rose more than 2.0% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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 >>
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