Health and Healthcare
Why Johnson & Johnson Raised Guidance After Missing Sales Estimates
Published:
Last Updated:
The company is now including the estimated impact of the Actelion acquisition in its financial guidance. As such, Johnson & Johnson increased its sales guidance for the full year 2017 from a prior range of $74.1 billion to $74.8 billion to a new range of $75.4 billion to $76.1 billion. Additionally, the company increased its adjusted earnings guidance for full year from a prior range of $6.93 to $7.08 to a new range of $7.00 to $7.15 per share.
Consensus estimates call for fiscal year 2017 EPS of $7.05 on revenues of $74.73 billion. For the second quarter, analysts are looking for EPS of $1.80 on revenues of $19.05 billion.
CEO Alex Gorsky said:
Johnson & Johnson’s first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year. The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products.
Consumer sales totaled $3.2 billion in the first quarter, an increase of 1% year over year. Pharmaceutical sales totaled $8.2 billion, up 0.8%, and medical device sales rose 3% to $6.3 billion.
Shares closed at $125.72 on Monday and traded down about 2.5% early at $122.56. The stock’s 52-week range is $109.32 to $129.00. The 12-month consensus analyst price target was $129.69 before the results were announced.
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.