An Earnings Beat by J&J Meets Tempered 2014 Guidance

Companies and Brands

Published: January 21, 2014 8:05 am

Last Updated: January 21, 2014 8:06 am

Johnson & Johnson (NYSE: JNJ) is out with its fourth-quarter earnings report. The pharma and consumer products giant is a key Dow Jones Industrial Average component, and shares are hanging in close to its highs after the release.

The company’s adjusted earnings rose by 4.2% to $1.24 per share, and sales grew 4.5% to $18.4 billion. Thomson Reuters had estimates of $1.20 per share and $17.95 billion in revenue.

Johnson & Johnson attributed the growth and solid against expectations based on strength in the Pharmaceutical business, key over-the-counter brands and a continued progress in integrating Synthes into its Medical Devices and Diagnostics business.

We now also have longer-term expectations as well. Johnson & Johnson sees earnings guidance for full-year 2014 to come in between $5.75 and $5.85 per share, excluding special items. Thomson Reuters has estimates of $5.85 per share, so Wall Street was already anticipating much of the good news. This would represent close to 5% earnings per share growth in 2014.

J&J shares are indicated up 0.6% in early trading around $95.70, just shy of the prior high of $95.99. Analysts have a consensus price target of almost $99.40.

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