Should Johnson & Johnson Be Getting More Out of Q3 Earnings?
Johnson & Johnson reported better-than-expected third-quarter financial results before the markets opened on Thursday.
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Johnson & Johnson (NYSE: JNJ) reported its third-quarter financial results before the markets opened on Thursday. The company said that it had $2.05 in earnings per share (EPS) and $20.35 billion in revenue. That compared with consensus estimates of $2.03 in EPS and $20.05 billion in revenue, as well as the $1.90 per share and $19.65 billion posted in the same period of last year.
During the latest quarter, domestic sales increased 3.6%. International sales increased 3.5%, reflecting operational growth of 7.5% and a negative currency impact of 4.0%.
In terms of its segments, the company reported as follows:
- Worldwide Consumer sales of $3.4 billion for the third quarter 2018 represented an increase of 1.8% versus the prior year, consisting of an operational increase of 4.9% and a negative impact from currency of 3.1%.
- Worldwide Pharmaceutical sales of $10.3 billion for the third quarter 2018 represented an increase of 6.7% versus the prior year with an operational increase of 8.2% and a negative impact from currency of 1.5%.
- Worldwide Medical Devices sales of $6.6 billion for the third quarter 2018 represented a decrease of 0.2% versus the prior year consisting of an operational increase of 1.7% and a negative currency impact of 1.9%.
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Looking ahead to the 2018 fiscal full year, the company expects to see EPS in the range of $8.13 to $8.18 and net sales between $81.0 billion and $82.4 billion.
Alex Gorsky, board chair and chief executive, commented:
We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our Pharmaceutical business, accelerating sales momentum in our Consumer business and consistent progress in our Medical Devices business. I’m confident that with our collaborative and inspired J&J colleagues around the world, unique broad-based business model and strategic investments in innovation, we are well positioned for success today and into the future.
Johnson & Johnson shares closed Monday at $133.95, with a consensus analyst price target of $144.53 and a 52-week trading range of $118.62 to $148.32. Following the announcement, the stock was relatively flat at $134.00 in early trading indications Monday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
