Health and Healthcare

Johnson & Johnson Remains Flat Despite Earnings Beat

Wikimedia Commons

Johnson & Johnson (NYSE: JNJ) released its third-quarter earnings report before the markets opened on Tuesday. The company said that it had $1.68 in earnings per share (EPS) and $17.8 billion in revenue. The third-quarter from last year reportedly had $1.49 in EPS and revenue of $17.1 billion. Thomson Reuters consensus estimates had called for EPS of $1.65 and $17.74 billion in revenue.

Domestic sales increased 6.7%. International sales increased 1.5%, reflecting operational growth of 1.7% and a negative currency impact of 0.2%. However, excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 5.9%, domestic sales increased 7.3% and international sales increased 4.2%.

During the quarter, a definitive agreement was announced to acquire Abbott Medical Optics, a wholly-owned subsidiary of Abbott Laboratories, for $4.325 billion in cash.

Johnson & Johnson maintained its sales guidance for the full-year 2016 of $71.5 billion to $72.2 billion. Additionally, the company increased its adjusted earnings guidance for full-year 2016 to the range of $6.68 to $6.73 per share. The consensus estimates for the full year were $6.69 in EPS and $72.16 billion in revenue.

Alex Gorsky, board chair and chief executive, commented:

Our third-quarter results reflect the success of our new product launches and the strength of our core businesses, driven by strong growth in our Pharmaceuticals business. With a number of regulatory approvals, several new drug application submissions and new breakthrough therapy designations from the FDA, we are increasingly confident in our pipeline expectation of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1 billion,” “Our broad-based business model, strategic investments and talented colleagues position us well for continued leadership in health care.

Shares closed Monday at $118.49, with a consensus analyst price target of $124.50 and a 52-week trading range of $94.28 to $126.07. After the report was released, shares remained relatively flat in early trading indications Tuesday.

The Average American Has No Idea How Much Money You Can Make Today (Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

 

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

1 https://www.fdic.gov/national-rates-and-rate-caps

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.