Johnson & Johnson Earnings: The Family Company Regroups

Rising costs did not help S&P 500 (NYSE:SPY) component Johnson & Johnson (NYSE:JNJ) in the first quarter as profit dropped from a year earlier. 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 for the First Quarter

Results: Net income for Johnson & Johnson fell to $3.48 billion ($1.25/share) vs. $4.53 billion ($1.62/share) a year earlier. A decline of 23.2% from the year earlier quarter.

Revenue: Rose 3.5% to $16.17 billion YoY.

Actual vs. Wall St. Expectations: JNJ was about in line with expectations as the mean analyst estimate was $1.26/share. Estimates ranged from $1.23 per share to $1.29 per share.

Quoting Management: “Our pharmaceuticals business demonstrated strong growth this quarter led by the performance of recently launched products. We delivered solid earnings while making the investments necessary to advance the robust pipelines across our businesses,” said William C. Weldon, Chairman and Chief Executive Officer. “The innovations we are bringing to the market, the changes we are implementing in manufacturing and quality, and the dedication of the people of Johnson & Johnson, give us great confidence in the future growth prospects of our business,” said Weldon.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 12% from the year earlier quarter.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 5.5% in the fourth quarter of the last fiscal year and fell 0.7% in the third quarter of the last fiscal year.

Competitors to Watch: GlaxoSmithKline plc (NYSE:GSK), Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK), Abbott Laboratories (NYSE:ABT), Boston Scientific Corporation (NYSE:BSX), Eli Lilly & Co. (NYSE:LLY), and Amgen, Inc. (NASDAQ:AMGN).

Today’s Performance: Shares of JNJ are trading at $62.33, up over 3% from the previous closing price of $60.46.


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