Johnson & Johnson (NYSE: JNJ) is set to release its fourth-quarter financial results before the markets open Tuesday. Thomson Reuters has consensus estimates of $1.42 in earnings per share (EPS) on $17.88 billion in revenue. In the same quarter of last year, the health care giant posted EPS of $1.37 and revenue of $18.25 billion.
The company is looking to save some money over the next few years and as a result it is taking action by restructuring its Medical Devices businesses. Ultimately Johnson & Johnson is undertaking actions to strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies and streamline operations while maintaining high-quality standards.
The actions are expected to result in annualized pretax cost savings of $800 million to $1 billion, the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016.
The company expects to record pretax restructuring charges of approximately $2.0 billion to $2.4 billion, which will be treated as special items, of which approximately $600 million will be recorded in the fourth quarter of 2015.
Johnson & Johnson is one the top market cap stocks in the health care sector. With everything from medical devices to over-the-counter (OTC) health items and prescription drugs, the company remains one of the most diversified health care names on Wall Street.
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