CWEB – Johnson & Johnson Beats Earnings Estimates

white-background (34) – Johnson & Johnson Beats Earnings Estimates

By Leslie Cohen
Managing Editor

Johnson & Johnson (NYSE: JNJ) Johnson & Johnson’s first-quarter earnings beat and exceeded expectations on 4-17-2018. With a lot of momentum carrying from 2017 to 2018, the results were positive.

Earnings came out at: $2.06 per share vs. $2.02 per share expected. Respectively, revenue topped to $20 billion vs. $19.46 billion that was expected.

The new US tax legislation law gives J&J more flexibility to invest on a global basis and within the US. Strong investments of 30 billion dollars over a four year period will occur in new technologies that will be manufactured in the US.

Johnson & Johnson’s role as a biotech buyer gives them a fifty percent growth rate for the company. J&J’s consumer business has lagged with the other occupants in this sector. Baby care product sales fell down to $457 million from $455 million, a 3% percent decrease year-over-year when excluding currency. J&J will relaunch its baby care later this year. The millennial age group is interested more in organic products. With competition heating up from other organic companies like “The Honest Company”, J&J will introduce a line of baby care items with organic ingredients.

Sales for Xarelto, the blood thinner medication rose approximately 13 percent on an operational basis reaching only $578 million in global sales, missing analysts’ estimates of $633.7 million. Sales worldwide fell down to 18 percent, excluding a positive currency impact, to $1.34 billion, therefore missing analysts’ expectations for sales of $1.5 billion.

Remicade drug for arthritis has been under pressure with generic versions on the market. On the bright side the Food and Drug Administration approved Erleada, a drug that treats non-metastatic castration-resistant prostate cancer.

Chief Financial Officer Dominic Caruso CFO is announcing his retirement from his 12 year tenure at Johnson & Johnson.

ChartJNJ data by YCharts

Comments is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, relies upon the “publisher’s exclusion” from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.

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