J&J tops estimates6 min read

Johnson & Johnson [$JNJ] issued a press release before the market opened on its third quarter results with the following headlines:

  • Sales of $20.7 billion reflecting growth of 1.9%, operational growth of 3.2%* and adjusted operational growth of 5.2%*
  • EPS of $1.81 increased 25.7%; adjusted EPS of $2.12 increased 3.4%*
  • Company increasing Full Year Sales and EPS guidance due to strong performance

CEO Alex Gorsky issued the following statement:

“Our third-quarter results represent strong performance, driven by competitive underlying growth in Pharmaceuticals and Medical Devices, as well as continued optimization in our Consumer business. As we look ahead, we remain confident in the strength of our broad-based business model, which is fueled by our disciplined portfolio management, focus on transformational innovation and dedicated employees around the world who position us for success today and well into the future.”

Financials

The figures below summarise revenue, expenses, profits, margins and each segment. The revenue growth is driven by contact lenses (7.6%), interventional solutions (14.3%), beauty (8.1%) and the pharmaceutical segment and within it immunology (Stelara®, Tremfya®), neuroscience (Invega sustenna®) and oncology (Darzalex®, Imbruvica®).

Valuation and outlook

The share price of J&J has gone up in recent years, but the top line and bottom line have not quite followed suit. The company does not at all seem undervalued at current price levels despite the guidance being raised. Many lawsuits are looming and keeping the share price at check.

Media coverage

Nightly Business Report

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