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.
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 surprise of 2.67%. Estimates have remained 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 second quarter earnings - the company reported EPS of $1.83 while our consensus called for EPS of $1.79.
Revenues Miss: Revenues were, however, slightly below expectations. Johnson & Johnson posted revenues of $18.84 billion, compared to our consensus estimate of $18.89 billion.
Key Statistics: Pharmaceutical segment sales declined 0.2% year over year to $8.64 billion, reflecting 1% operational growth and a 1.2% negative currency impact.
Ups 20177 View: J&J raised its sales and earnings guidance for 2017. J&J expects adjusted earnings per share in the range of $7.12 - $7.22 for 2017 compared with $7.00 - $7.15, expected previously.
The revenue guidance is in the range of $75.8 billion to $76.1 billion compared with $75.4 billion to $76.1 billion expected previously
Stock Price Impact: Shares rose more than 2% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
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