Johnson & Johnson (JNJ) Beats Earnings Estimates, Raises Guidance

Johnson & Johnson JNJ

Johnson & Johnson (NYSE:JNJ) released the earnings results from its first fiscal quarter, posting earnings of $1.54 per share, excluding items, on revenue of $18.1 billion—a year over year increase of 3.5%. Those numbers were enough to beat consensus estimates, which were at $1.48 per share in earnings on $18 billion in revenue.

Johnson & Johnson breaks down results

Diluted earnings per share were $1.64, including a net-gain from special items of $.3 billion in connection with Conor Medsystems. That was partially offset by acquisition-related costs for Synthes, Inc. and research and development charges. The company also reported a net charge of around $.6 billion.

Johnson & Johnson (NYSE:JNJ) reported $3.6 billion in worldwide consumer sales, a 3.2% decline year over year. Domestic sales fell 2.9% as the company divested its sanitary protection business in October. International sales fell 3.4% due to a .7% operational increase and a 4.1% negative impact from currencies. Worldwide

Main contributors to Johnson and Johnson’s results

According to this morning’s results, Johnson & Johnson (NYSE:JNJ) said the main positive contributors were sales of Aveeno and Dabao skin care products and international sales of Listerine, as well as U.S. sales of allergy drug Zyrtec.

Worldwide pharmaceutical sales were $7.5 billion, a 10.8% year over year increase. The main contributors in this division were sales of the biologic medicine Stelara, the schizophrenia treatment Invega Sustenna / Xeplion, HIV treatment Prezista and multiple myeloma drug Velcade.

New products with strong sales during the quarter include sales of hepatitis C drug Olysio / Sovriad and prostate cancer drug Zytiga. Other contributors were the anticoagulant drug Zaraleto and the type 2 diabetes drug Invokana.

Johnson & Johnson looks ahead

Johnson & Johnson (NYSE:JNJ) also increased its guidance for the full year, raising its earnings estimates to between $5.80 and $5.90 per share. This guidance excludes special items.

The Food and Drug Administration approved use of Johnson & Johnson (NYSE:JNJ)’s leukemia drug Imbruvica. The FDA also approved the company’s Thermocool Smarttouch catheter. The European Commission also granted conditional approval for tuberculosis drug Sirturo. The company also accepted The Carlyle Group LP (NASDAQ:CG)’s bid for its Ortho-Clinical Diagnostics business for about $4 billion.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

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