Johnson & Johnson Earnings: Here’s Why Investors Are Not Impressed

Johnson & Johnson (NYSE:JNJ) delivered a profit, YET came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.53%.

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Johnson & Johnson Earnings Cheat Sheet

Results: Net income increased 1078.9% to $2.57 billion (91 cents per diluted share) in the quarter versus a net gain of $218 million in the year-earlier quarter.

Revenue: Rose 8.58% to $17.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Johnson & Johnson reported adjusted net income of $1.19 cents per share. By that measure, the company beat the mean analyst estimate of $1.17. It missed the average revenue estimate of $17.67 billion.

Quoting Management: “Johnson & Johnson delivered solid results in 2012 reflecting continued sales momentum in many parts of our business driven by our focus on delivering meaningful innovation in health care to patients and customers. Our results included strong growth of key products, successful new product launches, and the addition of Synthes to our family of companies,” said Alex Gorsky, Chairman and Chief Executive Officer…

…In addition, we continued to make important investments building strategic partnerships and in advancing our pipeline, positioning us well for delivering sustainable growth as we enter 2013. I would also like to thank our talented colleagues at Johnson & Johnson for their extraordinary achievements in helping advance health and well-being for patients and customers around the world.”

Key Stats:

Revenue increased 3.51% from $17.05 billion in the previous quarter. Net income decreased 13.41% from $2.97 billion in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.37 to a profit $1.4. For the current year, the average estimate is a profit of $5.09, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)