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J&J (JNJ) Down on Trimmed View Despite Q2 Earnings Beat
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Johnson & Johnson (JNJ - Free Report) , the bellwether of healthcare companies, has a strong presence in the pharmaceutical, medical devices and consumer care markets across the world. This New Jersey-based company is well known for its baby-care products and brands like Tylenol in addition to drugs like Remicade and Concerta.
However, like many of its peers, JNJ is facing generic competition and pricing pressure for some of the products in its pharmaceutical segment.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential as well as the performance of new products apart from the usual top-and bottom-line numbers.
JNJ has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters, with an average positive surprise of 2.86%.
Estimates for 2018 have remained stable over the past 7 days.
Currently, JNJ has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: JNJ beat on second quarter earnings - the company reported EPS of $2.10 while our consensus called for EPS of $2.06.
Revenues Beat: Revenues also beat expectations. Johnson & Johnson posted revenues of $20.8 billion, compared to our consensus estimate of $20.21 billion.
Key Statistics: Pharmaceutical segment sales rose 19.9% year over year to $10.35 billion, reflecting 17.6% operational growth and 2.3% positive currency impact as sales rose in both domestic and international markets.
Trims 2018 Outlook: J&J tightened its previously issued earnings guidance for 2018 while lowering its sales range.
J&J expects 2018 adjusted earnings per share in the range of $8.07 - $8.17 compared to $8.00 - $8.20 expected previously. The guidance range reflects an operational growth rate between 8.5% and 9.9% (previously 6.8% and 9.6%).
Revenues are expected in the range of $80.5 to $81.3 billion, lower than $81.0 to $81.8 billion, reflecting operational constant currency sales growth rate in the range of 4.5% to 5.5% (previously 4% to 5%). The company also said that the favorable impact from currency was lower than previously expected.
The Zacks Consensus Estimate for earnings per share and revenues were $8.13 and $81.54 billion, respectively.
Stock Price Impact: Shares declined 1.4% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
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J&J (JNJ) Down on Trimmed View Despite Q2 Earnings Beat
Johnson & Johnson (JNJ - Free Report) , the bellwether of healthcare companies, has a strong presence in the pharmaceutical, medical devices and consumer care markets across the world. This New Jersey-based company is well known for its baby-care products and brands like Tylenol in addition to drugs like Remicade and Concerta.
However, like many of its peers, JNJ is facing generic competition and pricing pressure for some of the products in its pharmaceutical segment.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential as well as the performance of new products apart from the usual top-and bottom-line numbers.
JNJ has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters, with an average positive surprise of 2.86%.
Estimates for 2018 have remained stable over the past 7 days.
Currently, JNJ has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: JNJ beat on second quarter earnings - the company reported EPS of $2.10 while our consensus called for EPS of $2.06.
Revenues Beat: Revenues also beat expectations. Johnson & Johnson posted revenues of $20.8 billion, compared to our consensus estimate of $20.21 billion.
Key Statistics: Pharmaceutical segment sales rose 19.9% year over year to $10.35 billion, reflecting 17.6% operational growth and 2.3% positive currency impact as sales rose in both domestic and international markets.
Trims 2018 Outlook: J&J tightened its previously issued earnings guidance for 2018 while lowering its sales range.
J&J expects 2018 adjusted earnings per share in the range of $8.07 - $8.17 compared to $8.00 - $8.20 expected previously. The guidance range reflects an operational growth rate between 8.5% and 9.9% (previously 6.8% and 9.6%).
Revenues are expected in the range of $80.5 to $81.3 billion, lower than $81.0 to $81.8 billion, reflecting operational constant currency sales growth rate in the range of 4.5% to 5.5% (previously 4% to 5%). The company also said that the favorable impact from currency was lower than previously expected.
The Zacks Consensus Estimate for earnings per share and revenues were $8.13 and $81.54 billion, respectively.
Stock Price Impact: Shares declined 1.4% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!
Johnson & Johnson Price and Consensus
Johnson & Johnson Price and Consensus | Johnson & Johnson Quote
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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