J&J Earnings: Investors Bid Shares Higher

S&P 500 (NYSE:SPY) component Johnson & Johnson (NYSE:JNJ) reported its results for the third quarter. Johnson & Johnson is a holding company involved in the research and development, manufacture and sale of a range of health care products.

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Johnson & Johnson Earnings Cheat Sheet

Results: Net income for Johnson & Johnson fell to $3 billion ($1.05 per share) vs. $3.2 billion ($1.15 per share) a year earlier. This is a decline of 6.3% from the year-earlier quarter.

Revenue: Rose 6.8% to $17.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Johnson & Johnson fell short of the mean analyst estimate of $1.22 per share. It beat the average revenue estimate of $16.69 billion.

Quoting Management: “Our third-quarter results reflected continued sales momentum driven by strong growth of key products, successful new product launches, and the addition of Synthes to our family of companies. We advanced our pipelines with regulatory approvals for a number of new products, the submission of several new drug applications, and the completion of several strategic collaborations,” said Alex Gorsky, Chief Executive Officer. “I’m extremely proud of our talented and dedicated colleagues throughout Johnson & Johnson and I have great confidence in our ability to deliver sustainable growth and bring meaningful innovations to patients and customers around the world.”

Key Stats:

The company’s net income has fallen in each of the last two quarters. In the second quarter, net income fell 49.3% from the year-earlier quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by one cent.

Last quarter’s year-over-year revenue increase breaks a two-quarter streak of revenue declines. Revenue fell 0.7% in the second quarter and fell 0.2% in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.22 a share to $1.18 over the last thirty days. For the fiscal year, the average estimate has moved down from $5.14 a share to $5.06 over the last seven days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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