Preview Newsletter

Johnson & Johnson Earnings Report

Coverage

Healthcare M&A: Deal Johnson and Johnson In
Jan 26, 2016 | Wall Street Journal
By Charley Grant
J&J’s Revenue Falls on Currency Woes
Jan 26, 2016 | Wall Street Journal
By Chelsey Dulaney
J&J forecasts 2016 sales below analysts' estimates
Jan 26, 2016 | Reuters
J&J says valuations of potential acquisitions in 2015 were inflated
Jan 26, 2016 | Reuters
By Ransdell Pierson
Here's Why Shares of Johnson & Johnson Are Climbing
Jan 26, 2016 | Reuters
Johnson & Johnson tops 4Q earnings expectations, misses revenue forecasts
Jan 26, 2016 | Associated Press
Johnson & Johnson revenue tumbles as currency takes toll
Jan 26, 2016 | USA Today

Health giant Johnson & Johnson's revenue fell 2.4% to $17.8 billion in the fourth quarter, compared to a year earlier, as currency rates and a medical devices slump continued to take a toll.
Stocks jump as oil regains $30 level, traders shrug off China stock dive
Jan 26, 2016 | USA Today
By Adam Shell
Johnson & Johnson targets acquisitions with $18bn of cash pile
Jan 26, 2016 | Financial Times
By David Crow
J&J’s top line stung by dollar; profits rise
Jan 26, 2016 | Financial Times
J&J Earnings Beats Analysts' Estimates Thanks to Drug Sales
Jan 26, 2016 | Bloomberg
By Cynthia Koons
China Slowdown Hits Consumer Brands as P&G, J&J See Weak Results
Jan 26, 2016 | Bloomberg
By Cynthia Koons
DuPont, J&J and P&G Earnings All Point to Global Economic Pain
Jan 27, 2016 | Fortune
By Stephen Gandel
J&J tops earnings expectations for Q4, full year
Jan 26, 2016 | New Jersey Business
By Eric Strauss
Drug Sales Are Driving Johnson & Johnson's Growth
Jan 26, 2016 | Fortune
By Laura Lorenzetti
Johnson & Johnson (JNJ) Earnings Report: Sales Fall Short As Dollar Hurts Revenue
Jan 26, 2016 | International Business Times
By Cole Stangler
J&J sales fall on strong dollar
Jan 26, 2016 | CNBC Online
Strong dollar hits P&G, J&J and Dupont; Apple earnings tonight
Jan 26, 2016 | Yahoo! Finance
Johnson & Johnson (JNJ) Stock Rises on Earnings Beat
Jan 26, 2016 | TheStreet
By Rachel Graf
Johnson & Johnson (JNJ) Tops Q4 EPS by 2c
Jan 26, 2016 | Street Insider
Johnson & Johnson (JNJ) Pushes Higher on Solid Results; Stock Moves Above 200 Day MA
Jan 26, 2016 | Street Insider
Leerink Partners Raises Price Target on Johnson & Johnson (JNJ) Following 4Q Earnings
Jan 27, 2016 | Street Insider
Johnson & Johnson Profit Advances 4% In Q4
Jan 26, 2016 | RTT News
Johnson & Johnson beats profit expectations, but comes up shy on sales
Jan 26, 2016 | Morningstar
J&J (JNJ) Beats on 4Q Earnings but Misses on Revenues January 26, 2016
Jan 26, 2016 | Zacks
Johnson & Johnson Kicks Off 2016 With Solid Earnings and Guidance
Jan 26, 2016 | 24/7 Wall Street
Johnson & Johnson Finishes a Tough 2015
Jan 26, 2016 | The Motley Fool
What Johnson & Johnson’s Earnings Mean for Biotech Stocks
Jan 26, 2016 | Barron's
By Ben Levisohn
Medical device sales slide for Johnson & Johnson
Jan 26, 2016 | Mass Device
By Brad Perriello
J&J hints at 'bold steps' in device deals in 2016, details 5 device collaborations
Jan 26, 2016 | FiercePharma
By Stacy Lawrence
J&J's new launches deliver, but overall sales fall short on hep C, strong dollar
Jan 26, 2016 | FiercePharma
By Carly Helfand
Johnson & Johnson (JNJ) Stock Pops Upon Strong Profits
Jan 27, 2016 | Bidness Etc
J&J CEO: Patients have higher expectations
Jan 27, 2016 | Medical Marketing & Media
Johnson & Johnson: Like Clockwork
Jan 26, 2016 | Seeking Alpha
CC – J&J 4Q15
Jan 27, 2016 | Close Concerns
By Kelly L. Close

Television Coverage

Bloomberg Surveillance Clip
Jan 26, 2016 | Bloomberg Surveillance

View Clip Here: http://app.criticalmention.com/app/#clip/view/19893036?token=1c367595-095f-44ec-9dd5-be3189a2b071
Bloomberg GO Clip
Jan 26, 2016 | Bloomberg GO

View clip here: http://app.criticalmention.com/app/#clip/view/19893069?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Bloomberg GO Clip
Jan 26, 2016 | Bloomberg GO

View clip here: http://app.criticalmention.com/app/#clip/view/19893086?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Bloomberg GO Clip
Jan 26, 2016 | Bloomberg GO

View clip here: http://app.criticalmention.com/app/#clip/view/19893174?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
CNBC Squawk Box Clip
Jan 26, 2016 | CNBC Squawk Box

View clip here: http://app.criticalmention.com/app/#clip/view/19893048?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
CNBC Squawk Box Clip
Jan 26, 2016 | CNBC Squawk Box

View clip here: http://app.criticalmention.com/app/#clip/view/19893162?token=1c367595-095f-44ec-9dd5-be3189a2b071
Brief CNBC Squawk Box Clip
Jan 26, 2016 | CNBC Squawk Box

View clip here: http://app.criticalmention.com/app/#clip/view/19894433?token=1c367595-095f-44ec-9dd5-be3189a2b071
Brief CNBC Squawk Box Clip
Jan 26, 2016 | CNBC Squawk Box Clip

View clip here: http://app.criticalmention.com/app/#clip/view/19894426?token=1c367595-095f-44ec-9dd5-be3189a2b071
CNBC Squawk on the Street Clip
Jan 26, 2016 | CNBC Squawk on the Street

View clip here: http://app.criticalmention.com/app/#clip/view/19894393?token=1c367595-095f-44ec-9dd5-be3189a2b071
CNBC Squawk on the Street Clip
Jan 26, 2016 | CNBC Squawk on the Street

View clip here: http://app.criticalmention.com/app/#clip/view/19895053?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Brief CNBC Squawk on the Street Clip
Jan 26, 2016 | CNBC Squawk on the Street

View clip here: http://app.criticalmention.com/app/#clip/view/19895031?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Brief mention on CNN Newsroom
Jan 26, 2016 | CNN Newsroom

View clip here: http://app.criticalmention.com/app/#clip/view/19897558?token=07a79926-f049-4b88-b85d-c1c1bdffa791
Countdown to the Closing Bell with Liz Claman Clip
| Fox Business

View clip here:http://app.criticalmention.com/app/#clip/view/19898028?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Mad Money Clip
Jan 26, 2016 | CNBC

View clip here: http://app.criticalmention.com/app/#clip/view/19931602?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Nightly Business Report Clip
Jan 27, 2016 | PBS

View clip here: http://app.criticalmention.com/app/#clip/view/19935961?token=ec73fed9-bdef-4ade-a4b7-ff2116edb453
Time Warner Cable News All Night Clip
Jan 27, 2016 | Time Warner Cable

View clip here: http://app.criticalmention.com/app/#report/view?1193136/token/ec73fed9-bdef-4ade-a4b7-ff2116edb453

Coverage

Healthcare M&A: Deal Johnson and Johnson In

Jan 26, 2016 | Wall Street Journal

By Charley Grant

Rabbit season. Duck season. Pharma season?
The value proposition from big deals is becoming more attractive to Johnson & Johnson. The health-care titan, which reported fourth-quarter results Tuesday, indicated the bull market for health-care, pharma and biotech stocks had restrained its interest in hunting for large transactions.
Now, though, the beating many shares have taken, especially among high-flying biotech names, makes things look a bit more reasonable. “As we reflect back on 2015, we realize that the… market was premium priced,” Chief Executive Alex Gorsky said in response to a question asking why J&J hadn’t been more aggressive last year. Of course, J&J investors aren’t likely to be worried about its timidity in what proved to be a year of record-breaking deal volume.
If anything, they would probably like to see J&J maintain its discipline. To that end, Mr. Gorsky said that the company would act only “when we see the right value-creating deal, at the right price and with the right partners.”
Of course, discipline doesn’t have to mean delay. And Mr. Mr. Gorsky indicated 2016 may be different. “As we look at the environment today, we see a number of opportunities” across Johnson & Johnson’s business lines.
And having ended the fourth quarter with $18.5 billion in net cash, Mr. Gorsky has more than enough money to go shopping.

Last year, J&J zagged as the market zigged. That strategy paid off: J&J’s stock has outperformed both the NYSE Arca Pharmaceutical index and the Nasdaq Biotechnology Index so far this year and over the past year. Now it may be poised to build on its lead.

Return to headline | Return to top
J&J’s Revenue Falls on Currency Woes

Jan 26, 2016 | Wall Street Journal

By Chelsey Dulaney

Johnson & Johnson said Tuesday that a strong dollar contributed heavily to a 2.4% drop in fourth-quarter sales to $17.8 billion world-wide, but the company expressed optimism that both its underlying business and the global health-care market generally would grow this year.
J&J said relatively new drugs such as Xarelto and Imbruvica were driving increased sales in its pharmaceuticals division, while nearly all of the company’s recalled consumer health-products like children’s Tylenol were back on store shelves and helping turn around that business after years of manufacturing issues.
Executives said they expected a similar revival of the company’s struggling medical-device business, due to 3,000 layoffs that are pegged to save as much as $1 billion in costs and the launches of several new products, including knee-replacement parts and contact lenses.
“We’re optimistic about the opportunities in health care and frankly, the underlying strength of our core business,” J&J CEO Alex Gorsky told investors and analysts during a conference call.
J&J, of New Brunswick, N.J., is considered an industry bellwether because it is one of the world’s biggest health-products companies with a portfolio that spans across markets. The company expects the world-wide health-care market to grow 3% to 5% annually over the next few years, while coping with pricing pressures.
In response to increasing attention on drug prices, Mr. Gorsky urged politicians and policy makers to “take a holistic approach to reforming the health-care system.” He said pharmaceuticals account for just 12% of total health-care spending in the U.S. while often cutting other costs by preventing or curing disease.
At the same time, J&J executives sought to ease Wall Street concerns that one emerging tool for cutting spending on drugs, the introduction of lower-priced versions of biotech drugs, posed a big and imminent threat to sales of one of the company’s top-selling therapies, Remicade.
The executives said they aren’t expecting so-called biosimilar competition for the rheumatoid-arthritis agent in the U.S. this year, because the drug’s patent expires in September 2018 and the company will defend it.
When the biosimilar competition comes, J&J executives said they expect most Remicade patients will stay on the drug, because they are satisfied with the results.
Overall in the quarter, J&J’s revenue fell to $17.8 billion from $18.3 billion a year earlier. About half of the company’s sales are outside the U.S., and unfavorable currency rates shaved 6.8% off the latest quarter’s total. In addition, competition for the company’s hepatitis C drugs also hurt year-over-year comparisons.
Earnings in the fourth quarter rose to $3.22 billion, or $1.15 a share, from $2.52 billion, or 89 cents a share. Excluding a charge for restructuring the medical-devices business and other items, J&J reported earnings of $1.44 in the latest fourth quarter.
Shares of the company rose 3% in trading on the New York Stock Exchange, as analysts said the company’s forecast for 2016 earnings was better than they expected.
For 2016, J&J projected sales between $70.8 billion and $71.5 billion, below analyst expectations of $71.89 billion, and per-share earnings excluding certain items of $6.43 to $6.58, above analyst expectations of $6.38.
J&J executives gave the strongest indication to date that the company is eyeing deals. “We are actively looking for the right opportunities,” J&J Chief Financial Officer Dominic Caruso said.
J&J has about $18.5 billion in cash available, which Mr. Caruso said is more than it typically carries. Last year, J&J bid for Pharmacyclics, the company’s partner selling Imbruvica cancer drug. But AbbVie Inc. won the bidding with a deal worth $21 billion.

Mr. Gorsky said he saw a “number of opportunities” for deals across all of J&J’s businesses, but the company wouldn’t over pay and wanted to do friendly deals. “We are intending to be quite active,” Mr. Gorsky said.

Return to headline | Return to top
J&J forecasts 2016 sales below analysts' estimates

Jan 26, 2016 | Reuters

Johnson & Johnson (JNJ.N) forecast 2016 sales below analysts' estimate and reported a 2.4 percent drop in sales for the fourth quarter, hurt by a strong dollar.
The company, which got almost half of its revenue from outside the United States in 2015, said it expects 2016 full-year sales of $70.8 billion-$71.5 billion.
Analysts on average were expecting sales of $71.88 billion, according to Thomson Reuters I/B/E/S.
The dollar index .DXY, which measures the currency against a basket of six other major currencies, rose 9 percent in 2015, after rising 13 percent in 2014.
The company's net earnings rose about 28 percent to $3.22 billion, or $1.15 per share, in the fourth quarter.
On an adjusted basis, the company earned $1.44 per share, above analysts' average estimate of $1.42.
Sales fell to $17.81 billion, but was largely in-line with the average analyst estimate of $17.88 billion.
The band-aid maker, which said last week it would cut about 3,000 jobs within its struggling medical devices unit over the next two years, said it expects adjusted earnings of $6.43-$6.58 per share for 2016.

Analysts on average were expecting earnings of $6.38 per share.

Return to headline | Return to top
J&J says valuations of potential acquisitions in 2015 were inflated

Jan 26, 2016 | Reuters

By Ransdell Pierson

Jan 26 Johnson & Johnson CEO, in conference call:
* Says company will remain very active in mergers and acquisitions
* Says valuations of potential acquisition targets in 2015 were overly high

* (Reporting by Ransdell Pierson)

Return to headline | Return to top
Here's Why Shares of Johnson & Johnson Are Climbing

Jan 26, 2016 | Reuters

They're up 3%
Johnson & Johnson JNJ 3.85% on Tuesday reported higher-than-expected quarterly earnings, helped by lower taxes and cost cuts, and gave a 2016 profit outlook slightly above Wall Street’s.
Shares of the diversified health care company rose nearly 3% in morning trading as investors shrugged off fourth-quarter sales and a 2016 revenue outlook that were both below analysts’ estimates.
The strong U.S. dollar and disappointing demand for consumer products weighed on results, and analysts said J&J would probably rely on more cost cuts in 2016 to meet its earnings forecast.
In a conference call with analysts, CEO Alex Gorsky said the company was interested in dealmaking within its main consumer, medical device, and pharmaceuticals segments, although it believes valuations of potential acquisition targets were inflated in 2015.
“We will continue to be very active in the M&A area,” he said, noting that J&J in recent years had derived about half its revenue from acquired products.
J&J will also consider buying businesses outside its current three main product areas, Gorsky said.
The company has pursued fairly small “tuck-in” acquisitions in recent years as some other large health care companies struck big deals, most notably Pfizer PFE 0.49% planned $160 billion acquisition of Allergan AGN -0.19% .
Gorsky said J&J was “engaged and involved” last year in studying potential acquisitions even though it did not announce major deals.
“Smaller tuck-ins are, frankly, more straightforward to get done, but we won’t shy away from large” deals, Gorsky said.
J&J’s fourth-quarter sales fell 2.4% to $17.81 billion, below the analysts’ average estimate of $17.88 billion, according to Thomson Reuters I/B/E/S.
The company forecast 2016 sales at $70.8 billion to $71.5 billion. Analysts on average were expecting $71.88 billion.
J&J said it expected earnings of $6.43 to $6.58 per share for 2016, excluding special items. Wall Street was expecting $6.38.
Jefferies analyst Jeffrey Holford said J&J’s profit outlook included about $200 million of additional cost savings providing a lift of about 6 cents per share.
Fourth-quarter net income rose about 28% to $3.22 billion, or $1.15 per share, from a year earlier, when it took special charges of about $1.4 billion.

Excluding restructuring charges and other items, J&J earned $1.44 per share, topping the analysts’ average estimate of $1.42.

Return to headline | Return to top
Johnson & Johnson tops 4Q earnings expectations, misses revenue forecasts

Jan 26, 2016 | Associated Press

Johnson & Johnson posted a 28 percent jump in fourth-quarter profit, as the sale of part of its medical devices business, which is being restructured, offset the strong dollar and multiple charges at the world's biggest health care product company.
J&J's consumer business, hammered by an embarrassing stretch of dozens of recalls dating to 2009, finally has nearly all its products back in stories, the company said. However, its prescription drugs segment turned in the best performance and was the only segment with higher sales.
Net income was $3.2 billion, or $1.15 per share, up from $2.53 billion, or 89 cents per share, a year earlier. Adjusted net income was $4.04 billion, or $1.44 per share, which was 2 cents better than Wall Street analysts expected, according to Zacks Investment Research.
J&J posted a $1.21 billion gain, mainly for its October divestiture of its Cordis heart devices unit. Cordis had accounted for about a quarter of device sales.
Revenue for the maker of baby shampoo, prescription medicines and medical devices fell 2.4 percent to $17.81 billion, hurt by the dollar that has weighed on other U.S. multinationals as well. The total missed analyst projections for 17.94 billion.
"The quarter was pretty solid," said Edward Jones analyst Ashtyn Evans, adding that over the long term, profit will be driven more by launches of new prescription drugs than medical devices or consumer products. For example, she said recently approved Darzalex, for the blood cancer multiple myeloma, eventually could produce billions in annual sales.
Johnson & Johnson, based in New Brunswick, New Jersey, expects full-year adjusted earnings, which excludes one-time items, of $6.43 to $6.58 per share, with revenue of $70.8 billion to $71.5 billion. Analysts were expecting $71.9 billion in sales and earnings of $6.37 per share.
"We're pleased with the results," CEO Alex Gorsky told analysts during a conference call. "We're optimistic about the opportunities in health care and the strength of our business."
He noted J&J plans by 2019 to apply for approval of 10 new products that each could generate $1 billion in annual sales.
Last week, Johnson & Johnson said it plans to restructure its underperforming medical devices business, which includes the reduction of about 3,000 jobs over the next two years.
Just a few years ago, medical device sales were surging and became J&J's top-grossing business. But those sales have been under strain of late, particularly for brands such as DePuy orthopedic implants and Ethicon surgical equipment.
Evans said the devices restructuring is a positive. She expects J&J to use the annual savings of $800 million to $1 billion it anticipates by 2018 for "attractive acquisitions" and internal product development.
In the U.S., J&J's biggest market, sales jumped 8 percent to $9.29 billion. But sales to other countries dropped 11.7 percent, to $8.52 billion, hurt by the strong dollar. It reduced by 12.9 percent the value of foreign sales, which are paid for in weaker local currencies.
Sales of prescription drugs rose 0.8 percent to $8.06 billion, led by strong sales of Remicade for rheumatoid arthritis, psoriasis treatment Stelara and Xarelto for preventing heart attacks and strokes.
Sales of consumer health products fell 7.9 percent to $3.32 billion. Sales of medical devices and diagnostic equipment fell 3.3 percent to $6.43 billion.
"It was a decent quarter, with the bad news in devices offset by good news in drug sales and the announced cuts in the devices businesses," noted Erik Gordon, a professor and pharmaceuticals analyst at University of Michigan's Ross School of Business. "All eyes will be on the pharma business and whether the big sellers can show consistent sales increases."
For all of 2015, J&J reported net income fell 5.6 percent to $15.41 billion, or $5.48 per share. Revenue dropped 5.7 percent to $20.07 billion.

In late-morning trading, J&J shares rose by $2.58, or 2.7 percent, to $98.98.

Return to headline | Return to top
Johnson & Johnson revenue tumbles as currency takes toll

Jan 26, 2016 | USA Today

Health giant Johnson & Johnson's revenue fell 2.4% to $17.8 billion in the fourth quarter, compared to a year earlier, as currency rates and a medical devices slump continued to take a toll.
But Johnson & Johnson matched investor expectations on earnings and posted operational sales growth of 4.4% for the quarter. J&J's net earnings per share for the quarter were $1.15, equaling S&P Capital IQ analyst estimates for the period.
Net earnings for the quarter rose 18% to $3.2 billion.
For the full year, revenue fell 4.7% to $70.1 billion, as the strong U.S. dollar and other currency exchange rates dragged down revenue by 7.5%. Excluding currency rates, operational revenue was up 1.8% for the year with bright spots such as renewed vitality in the Band-Aid segment.
Still, the company has encountered a rocky patch in certain areas — especially medical devices, where it announced last week that it would soon shed 3,000 jobs worldwide.
Medical device sales fell 8.7% for the year to $25.1 billion, including an operational decline of 1.4%.
The company's consumer division recorded a 6.8% sales decline to $13.5 billion during the year, including an operational increase of 2.7%. The pharmaceutical unit posted a 2.7% decline in revenue to $31.4 billion, an operational increase of 4.2%.
For 2016, J&J projected overall operational sales growth of 2.5% to 3.5% for worldwide revenue of $70.8 billion to $71.5 billion and adjusted earnings per share of $6.43 to $6.58, representing an operational increase of 5.3% to 7.7%.

"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our pharmaceutical business and iconic consumer brands," J&J CEO Alex Gorsky said in a statement. "As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in."

Return to headline | Return to top
Stocks jump as oil regains $30 level, traders shrug off China stock dive

Jan 26, 2016 | USA Today

By Adam Shell

U.S. stocks, still searching for stability after yesterday's sell-off and a rocky start to the new year, rose at the open Tuesday as volatile oil prices climb back above $30 a barrel and Wall Street shrugs off another stock rout in China overnight.
The turbulent year for stocks continues amid a jittery trading environment in which stock movements are increasingly tied to the direction of oil prices, the global economic outlook in the face of slowing growth in China and uncertainty over interest rate policy at home.
The Dow Jones industrial average was up about 140 points, or 0.9%, in early trading, The Standard & Poor's 500 stock index gained 0.7% and the Nasdaq composite 0.4% higher.
U.S.-produced crude, which was trading in and out of positive territory, was up 26 cents, or 0.9%, at $30.60 a barrel. Oil, which rallied sharply late last week, relapsed Monday, tumbling more than 5%.
Investors were again digesting a big market selloff in mainland China, where the Shanghai composite fell 6.4% to its lowest level since December 2014.
Wall Street is also eagerly awaiting the policy statement on interest rates from the Federal Reserve, which will be released Wednesday at 2 p.m. ET at the end of the Fed's two-day January meeting. Investors will be closely looking for any clues that the Fed might suggest the U.S. central bank will be less aggressive on interest rate hikes this year than originally planned due to the persistent volatility in the energy and stock markets around the globe. When the Fed hiked short-term rates a quarter-point in December for the first time in nearly a decade, it forecast four more quarter-point moves this year. But Wall Street is pricing in one at the moment.
The fourth-quarter 2015 earnings season rolls on today, with Apple, the world's most-valuable company reporting results after the bell.
Results before the opening bell were relatively solid, and included an earnings-per-share beats from drug giant Johnson & Johnson (JNJ) and consumer products maker Procter & Gamble (PG). Both stocks were moving up in pre-market trade, with J&J shares were up 60 cents, or 0.6%, to $97 and P&G shares up $1.25, or 1.6%, to $78.10.
In Europe, stocks were off their earlier lows, with the broad Stoxx Europe 600 unchanged and the German DAX up 0.1% and the CAC 40 in Paris 0.1% higher

Return to headline | Return to top
Johnson & Johnson targets acquisitions with $18bn of cash pile

Jan 26, 2016 | Financial Times

By David Crow

Johnson & Johnson, the world’s largest healthcare company, said it was hunting for acquisition targets on which to spend its more than $18bn of cash but insisted it would be “patient” when assessing potential deals.
The company said it had roughly $18.5bn of net cash, making it one of a handful of groups that will have the capacity to pursue big-ticket acquisitions even as debt markets tighten and interest rates rise.
"This is a higher level of cash than we typically hold and . . . we are actively looking for the right opportunities to deploy that capital to create greater value for our shareholders,” said Dominic Caruso, the company’s chief financial officer.
He added: “But we’re patient . . . and we’ll only act when we see the right value-creating deal at the right price with the right partners.”
The company has sat on the sidelines of a healthcare deals frenzy that started in 2014, during which many of its rivals have completed large acquisitions, such as Pfizer, which has agreed to buy rival Allergan for roughly $160bn.
J&J tried to buy Pharmacyclics, the maker of a blockbuster blood cancer drug, in March last year, but lost out to AbbVie, which bought the company for about $21bn.
“Just because we didn’t close on a larger deal I would not assume we are not engaged or involved,” said Alex Gorsky, chief executive.
J&J outlined its approach to deals as it published annual earnings for 2015, during which its revenues fell roughly 6 per cent to $70.1bn. The company attributed the sales slide to the impact of a strong dollar and the launch of a cure for hepatitis C that virtually wiped out sales of its own drug.
The company’s earnings per share fell to $5.48 compared with $5.70 in 2014.
J&J is the world’s largest healthcare company, with three separate divisions focused on pharmaceuticals, medical devices including hip and knee replacements, and consumer products such as Band-Aid plasters and nappies.
Excluding the impact of currency fluctuations, sales at its pharmaceuticals division rose 4.2 per cent year on year to $31.4bn in 2015, while revenues at its medical devices unit fell 1.4 per cent to $25.1bn. Revenues at its consumer arm, the smallest of its three divisions, were up 2.7 per cent at $13.5bn.
Last week, the company said it would cut 3,000 jobs at its medical devices unit as part of a restructuring effort designed to save up to $1bn a year in costs.
Vamil Divan, a pharmaceuticals analyst at Credit Suisse, said the performance at the company’s drugmaking unit had set “a relatively positive tone for earnings season for US pharma companies”.
J&J said it expected full-year sales to be in the region of $70.8bn to $71.5bn this year, below the $71.8bn level Wall Street analysts were typically expecting.
However, it said adjusted earnings per share would be roughly $6.50 per share in 2016, a touch higher than analyst forecasts, largely due to lower costs and a higher market share for some of its best-selling products.
Shares in J&J were up 2.5 per cent in early trading in New York, which analysts attributed to the company’s apparent willingness to improve its profitability by reducing costs.

Return to headline | Return to top
J&J’s top line stung by dollar; profits rise

Jan 26, 2016 | Financial Times

Johnson & Johnson, the world’s largest healthcare company, has underlined the pain a stronger dollar is inflicting on America’s pharmaceutical industry by reporting a decline in revenues.
Revenues at the company, which has a market value of $267bn, fell 2.4 per cent to $17.8bn in the final quarter of 2015, J&J said, with the firmer greenback hurting overseas sales. The company did post higher profits for the period, up to $3.2bn from $2.5bn a year ago, and adjusted earnings per share of $1.44 eclipsed analysts forecasts of $1.42,
The New Jersey-based company spans three businesses: consumer products, pharmaceuticals and medical devices. It’s the latter that has proved the biggest depressant on revenues, prompting J&J to last week announce 3,000 job cuts at the unit.
J&J shares over the last five yearsBut with its pharmaceutical business also failing to shine as key drugs including prostate cancer treatment Zytiga face new competition, analysts have speculated that J&J could use some of its cash pile for acquisitions.

The pharmaceutical industry has proved a lucrative source of fees for investment banks and boutique advisory firms as the expiry of patents on best-selling drugs, cheap financing and the lure of so-called tax inversion deals trigger a wave of M&A.

Return to headline | Return to top
J&J Earnings Beats Analysts' Estimates Thanks to Drug Sales

Jan 26, 2016 | Bloomberg

By Cynthia Koons

Johnson & Johnson, the world’s largest health-care company, beat fourth-quarter profit estimates, helped by blockbusters like arthritis treatment Remicade and psoriasis drug Stelara.
Earnings were $1.44 a share, excluding some items, J&J said Tuesday, topping the $1.42 average of 20 analysts’ projections compiled by Bloomberg. Facing a slowdown in medical devices, J&J is relying on prescription medicines to boost growth. The company said last week it plans to cut about 3,000 jobs from the medical-devices unit, which has been under pressure from cost-cutting by insurers and hospitals.
Drug sales:
·        Remicade $1.68 billion vs estimate $1.62 billion
·        Stelara $742 million vs est. $614.8 million
·        Zytiga $581 million vs est. $586.3 million
·        Xarelto $494 million vs est. $509.3 million
·        Sales fell 2.4 percent to $17.8 billion, lowered by the impact of currencies. Analysts anticipated $17.9 billion.
·        2016 forecast of $6.43 to $6.58 a share. Adjusted earnings guidance excludes impact of after-tax intangible amortization expense and special items. May not compare with the $6.38 average of analysts’ predictions
·        J&J’s 2016 sales forecast range of $70.8 billion to $71.5 billion.

Pharmaceuticals were once again the biggest driver of growth last year. Excluding the impact of foreign exchange, drugs sales grew 4.2 percent in 2015. The consumer business -- home of brands like Johnson’s baby-care products, Neutrogena and Listerine -- rose 2.7 percent. Sales of medical devices dropped 1.4 percent.

Return to headline | Return to top
China Slowdown Hits Consumer Brands as P&G, J&J See Weak Results

Jan 26, 2016 | Bloomberg

By Cynthia Koons

Consumer product giants Procter & Gamble Co. and Johnson & Johnson reported slowing sales for some brands in China last quarter, as weakness in the world’s second-largest economy starts to hurt multinationals that have spent years building up their businesses there.
P&G Chief Financial Officer Jon Moeller said Tuesday on a conference call that certain brand categories in China are growing 5 percent to 8 percent annually, “somewhat slower than they were two and three years ago.” Likewise, J&J said international sales from businesses such as its baby care and skin lines were hurt by the Chinese slump.
“We did see a slowdown in China, primarily in the consumer business,” said Dominic Caruso, J&J’s chief financial officer. He said the company’s medical-devices and pharma businesses still had high single-digit growth, and that the company was still optimistic about business in the country.
China’s emerging middle class has been a source of optimism for multinational companies for years as people move to cities from rural areas, find higher-paying jobs, and increasingly spend their discretionary income on brand-name products like the ones sold be J&J and P&G. Facing Headwinds
Yet that story has been changing lately. China’s economic growth slowed in the December quarter, marking the weakest period since the 2009 global recession, with industrial production, retail sales and fixed-asset investment all facing headwinds.
Still, companies like New Brunswick, New Jersey-based J&J don’t expect that even a significant slowdown in China would hurt their businesses substantially. Caruso estimated that the country contributes less than 5 percent of total revenue, and he views it as a longer-term opportunity.
“Any short-term changes in the economy are unlikely to have any significant impact on our results,” he said Tuesday on a conference call with investors.
J&J has been operating in China for more than 30 years. It doesn’t break out results for the country, though two years ago it said its business in China brought in $2.8 billion in annual sales.Premium Brands
P&G’s Moeller said on the conference call that the Cincinnati-based company is seeing its strongest growth in China in premium categories such as the SK-II skin cream line. Baby care and feminine products have been weak, however.
Moeller said he’s been spending a lot of time in China, traveling there just before Christmas and again last week. He’s trying to figure out how the consumer products giant can capitalize on the lifting of China’s one-child policy. He said he doesn’t expect the recent hiccups to continue.
“The current guidance does expect an improvement in China in the back half, and that should be very doable just based on the math alone,” he said on the call. “We really think that there is significant continued opportunity there, both top and bottom line.”

Return to headline | Return to top
DuPont, J&J and P&G Earnings All Point to Global Economic Pain

Jan 27, 2016 | Fortune

By Stephen Gandel

Wall Street is starting to look pretty thin on top.
On Tuesday, DuPont  DD 0.89%  reported its first quarterly loss in years—$253 million in the first three months of the year. That was in line with analyst expectations. The real disappointment was its sales, which dropped in all six of its business segments across all regions and was down nearly 10% from the same period a year ago. Analysts hadn’t been expecting as steep a decline.
What’s DuPont’s plan to shore up its bottom line for the rest of the year? More cost cutting. The company said that it plans to eliminate another $730 million in expenses by the end of the year.
Cost cutting is usually the way companies make their numbers when the economy is in a slump or at the beginning of a recovery. But this quarter, it seems more and more companies are announcing improving earnings yet disappointing sales.
On Tuesday, Procter & Gamble  PG 2.55%  reported that its earnings in the last three months of 2015 rose 35% to $3.2 billion. But its sales during the quarter were down 9% from a year ago. The company appears to have benefited from raising prices, even as unit sales have declined.
Johnson & Johnson  JNJ 4.96%  had a similar quarter. The company’s earnings were up 27%, slightly better than analysts’ expectations. Sales were hurt by a weaker dollar, which the company said chopped 7% off earnings.
So far, 90 companies in the S&P 500 have reported earnings. Thirty-three have reported earnings that were better than expected, but sales that were worse, according to FactSet. More companies tend to meet earnings expectations than sales expectations. But the percentage of companies missing their sales targets is higher than usual. As of the beginning of this week, 49% of S&P companies that had reported earning had beat sales expectations. That’s down from a 5-year average of 56%. Meanwhile, 73% of those companies reported earnings that beat expectations. That was higher than the 5-year average of 67%.
How exactly companies are making their bottom lines rise with lower sales? Some of this has to do with financial engineering, including share buybacks. Analysts typically measure whether companies beat or missed their earnings based on earnings per share, which can be manipulated by corporate stock buybacks.
At the same time, companies, particularly large ones, are facing stronger economic headwinds than in the past few years. The global economy is no longer being pushed along by emerging markets like Brazil, and, more importantly, China’s growth appears to be slowing. What’s more, the stronger dollar, which is not totally unconnected to weaker growth overseas, is hurting the profitability of foreign sales. On top of that, U.S. retail sales are up, but not as much as expected.
Of course, America’s current recovery has consistently delivered underwhelming economic growth. That’s translated to weak sales growth. Companies have made up for it with cost cutting and finding growth overseas. But it looks like they have just about maxed out on the former lever for a while, as profit margins are at or near all-time highs. And now, the latter lever isn’t doing the trick, either.

Return to headline | Return to top
J&J tops earnings expectations for Q4, full year

Jan 26, 2016 | New Jersey Business

By Eric Strauss

Johnson & Johnson topped earnings expectations for the fourth quarter on Tuesday, although overall financial results were mixed.
The New Brunswick-based consumer health care company said in a news release that adjusted diluted earnings per share came in at $1.44, up 5.1 percent from the previous year. In addition, adjusted diluted EPS came in at $6.20 for the full year 2015, but that was down 3 percent from the 2014 year.
Wall Street analysts had expected earnings to come in at $1.42 for the quarter, and $6.18 for the full year, according to Yahoo! Finance.
“Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our pharmaceutical business and iconic consumer brands,” Chairman and CEO Alex Gorsky said in a prepared statement. “As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in.”
Adjusted net earnings for the quarter and year were $4 billion and $17.4 billion, respectively.
J&J said its quarterly sales figure was $17.8 billion, down 2.4 percent from the year-earlier period. However, operational sales results rose 4.4 percent, with currency impact taking its toll. While domestic sales rose 8 percent, international sales fell 11.7 percent.
Sales for the year came in at $70.1 billion, down 5.7 percent from 2014. Again, a negative currency impact weighed down figures, with operational results up 1.8 percent.
J&J said its 2016 full-year sales guidance would be $70.8 billion to $71.5 billion, or operational growth of 2.5 to 3.5 percent. It also announced adjusted earnings guidance for 2016 of $6.43 to $6.58 per share.

Return to headline | Return to top
Drug Sales Are Driving Johnson & Johnson's Growth

Jan 26, 2016 | Fortune

By Laura Lorenzetti

Healthcare conglomerate Johnson & Johnson has its growing drug sales to thank for its surprisingly strong earnings last year. That’s especially good news as its medical devices unit–a historically strong area for the company–faced declining sales and upheaval internally as the company restructures the unit.
Overall, drug sales were the biggest driver of growth for the company. Drug sales were up 4.2% worldwide last year, excluding the impact of foreign exchange, helped by products like psoriasis treatment Stelara and anti-inflammatory drug Simponi. Stelara sales were particularly strong, gaining 26.2% last year compared to 2014, excluding foreign exchange.
Johnson & Johnson, which claims title to the world’s largest health care company, has been relying on drug sales to spur growth as its medical devices unit struggles with declining revenue. Drug sales account for about 45% of total revenue and have grown nearly 9.6% annually since 2010, according to an analysis by Sam Fazeli, a senior industry analyst at Bloomberg Intelligence. Medical devices, which have historically topped sales of pharmaceuticals over the past several years, now account for about 36% of sales.
The company plans to cut about 3,000 jobs within medical devices as it restructures the unit, focusing on the orthopedics, surgery, and cardiovascular businesses which have been hit particularly hard by cost-cutting from insurers and hospitals. The move is expected to save Johnson & Johnson as much as $1 billion by the end of 2018. The company’s consumer medical devices, vision care, and diabetes care, part of the same division, won’t be affected by the cuts.
The health care giant isn’t giving up on medical devices. Instead, it plans to use the move to “accelerate the pace of innovation, address unmet patient needs, and drive growth,” according to the company. This could include buying companies with interesting products, either in devices, consumer products, or pharmaceuticals. CEO Alex Gorsky said that the company is actively looking for the right deal and sees “opportunities across all three of our different sectors.”
The diversified growth will be especially important as Johnson & Johnson’s JNJ 3.84% drug sales begin to slow amid growing competition, and new competitors like GlaxoSmithKline GSK 2.70% and Bayer are likely to only increase the pressure in 2016, according to Fazeli.

Johnson & Johnson reported its fourth-quarter and full-year 2015 earnings Tuesday. Earnings were $1.44 a share for the quarter, excluding select items, surpassing the average analyst estimate of $1.42 a share. Revenues for the quarter were $17.8 billion, falling just short of analyst expectations.

Return to headline | Return to top
Johnson & Johnson (JNJ) Earnings Report: Sales Fall Short As Dollar Hurts Revenue

Jan 26, 2016 | International Business Times

By Cole Stangler

Johnson & Johnson, the world’s largest maker of healthcare products, posted earnings on Tuesday that failed to meet expectations on Wall Street. Sales last quarter declined 2.4 percent compared with the same period in 2014, weakened by a strong dollar.
The New Jersey-based company — known for its baby shampoo, Band-Aids, prescription medicines and medical devices — generated nearly half of its sales last year outside the United States. Revenue last quarter was $17.81 billion, just shy of analysts’ expectations of$17.94 billion.
The company’s profit climbed by nearly 28 percent to $3.22 billion, or $1.15 per share, during the final quarter of 2015. That fell short of analysts’ average estimate of $1.42 per share.
On an adjusted basis, the company earned $1.44 per share. It sounded an optimistic note Tuesday.
“Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our pharmaceutical business and iconic brands,” the company’s chairman and CEO, Alex Gorsky, said in a statement. “As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in.”
Last week, the company announced it would restructure its medical device business and cut 3,000 jobs globally in the division over the next two years. The layoffs are related to the company’s orthopedics, surgery and cardiovascular operations, a Johnson & Johnson spokesman told Reuters, but will not immediately result in the elimination of any products.
As the Associated Press noted, the job cuts mark a contrast from just a few years ago, when medical device sales were the company’s top-grossing business segment.
Johnson & Johnson stock was up around 3 percent Tuesday morning, trading at over $99 per share.

Return to headline | Return to top
J&J sales fall on strong dollar

Jan 26, 2016 | CNBC Online

Johnson & Johnson reported a 2.4 percent drop in fourth-quarter sales, hurt by a strong dollar.
The company's net earnings rose to $3.22 billion, or $1.15 per share, for the quarter ended Dec. 31, from $2.52 billion, or 89 cents per share, a year earlier. J&J posted adjusted earnings of $1.44 a share.
Sales fell to $17.81 billion from $18.25 billion.
Analysts had expected J&J to report adjusted earnings of about $1.42 a share on $17.88 billion in revenue, according to a consensus estimate from Thomson Reuters.
Last Tuesday, Johnson & Johnson announced that it would slash 3,000 jobs within its medical devices unit over the next two years.

In a separate announcement, the U.S. Supreme Court decided that it would not hear the health care giant's appeal for a $140 million lawsuit alleging Johnson & Johnson had failed to adequately warn consumers of a skin condition linked to its Children's Motrin pain and fever medication.

Return to headline | Return to top
Strong dollar hits P&G, J&J and Dupont; Apple earnings tonight

Jan 26, 2016 | Yahoo! Finance

Here are some of the stocks the Yahoo Finance team will be watching for you today. It's a big day for earnings from the Dow components, and here's the key phrase—the strong dollar.
Procter & Gamble (PG): The consumer products giant is beating second-quarter earnings estimates, but revenue came up short. P&G blames the strong dollar for reducing sales by 9% from the same period last year. And it also took a hit from the deconsolidation of its Venezuelan operations and some brand divestitures.
Johnson and Johnson (JNJ): The story is the same for the health care products and pharmaceutical firm, which topped forecasts on the bottom line but missed on the top line. J&J says the currency issues pulled down its sales by 2.4% from last year, even though domestic sales jumped 8%.
Get the Latest Market Data and News with the Yahoo Finance App
Dupont (DD): Hit repeat. The global sciences company is reporting fourth-quarter profit topping analysts' estimates, while revenue came in light. Dupont says currency issues knocked an additional 8% off its sales in the period. In addition, the company is warning of difficult global economic conditions in agriculture. Slower growth in emerging markets is expected to hurt sales growth for the full year.

Apple (AAPL): The world's biggest company by market value is reporting its fiscal first-quarter results after the closing bell today. And of course, the big focus will be on how many iPhones the company sold in the quarter, as reports have been circulating that demand is slowing. Analysts are looking for iPhone sales of at least 75 million for the holiday period.

Return to headline | Return to top
Johnson & Johnson (JNJ) Stock Rises on Earnings Beat

Jan 26, 2016 | TheStreet

By Rachel Graf

Johnson & Johnson (JNJ -Get Report) stock is climbing by 1.08% to $97.44 in early-morning trading on Tuesday, after the medical device and pharmaceutical company reported its 2015 fourth quarter financial results before the market open.
The company posted adjusted earnings of $1.44 per share for the most recent quarter, up from $1.37 per share for the year-ago period.
Revenue declined by 2.4% to $17.81 billion, down from $18.25 billion for the 2014 fourth quarter. Sales were negatively impacted by the strong dollar.
Analysts surveyed by Thomson Reuters expected the company to post earnings of $1.42 a share on revenue of $17.88 billion for the quarter.
"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our pharmaceutical business and iconic consumer brands," CEO Alex Gorsky said in a statement.
Johnson & Johnson now expects 2016 full-year adjusted earnings to range between $6.43 and $6.58 per share, and for full-year sales to range between $70.8 billion and $71.5 billion.
Analysts surveyed by Thomson Reuters expect earnings of $6.38 per share on sales of $71.88 billion for the year.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Johnson & Johnson's strengths such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: JNJ
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Return to headline | Return to top
Johnson & Johnson (JNJ) Tops Q4 EPS by 2c

Jan 26, 2016 | Street Insider

Johnson & Johnson (NYSE: JNJ) reported Q4 EPS of $1.44, $0.02 better than the analyst estimate of $1.42. Revenue for the quarter came in at $17.8 billion versus the consensus estimate of $17.88 billion.
"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands," said Alex Gorsky, Chairman and Chief Executive Officer. "As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in."
Mr. Gorsky continued, "I want to thank all of our colleagues for contributing to these results through their commitment and dedication to the people around the world who rely on our products."
The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion reflecting expected operational growth in the range of 2.5% to 3.5%. Excluding the impact of acquisitions, divestitures and hepatitis C sales, operational sales growth is expected to be in the range of 4.5% to 6.0%.* Additionally, the company announced adjusted earnings guidance for full-year 2016 of $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to 7.7%.* Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.
Worldwide Consumer sales of $13.5 billion for the full-year 2015 represented a decrease of 6.8% versus the prior year, consisting of an operational increase of 2.7% and a negative impact from currency of 9.5%. Domestic sales increased 2.5%; international sales decreased 11.9%, which reflected an operational increase of 2.7% and a negative currency impact of 14.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 4.1%, domestic sales increased 4.6% and international sales increased 3.8%.*
Positive contributors to Consumer operational results were sales of over-the-counter products including TYLENOL® and MOTRIN® analgesics, upper respiratory products including ZYRTEC® allergy medications, and digestive health products; international feminine protection products; LISTERINE® oral care products; and NEUTROGENA® skin care products.
Worldwide Pharmaceutical sales of $31.4 billion for the full-year 2015 represented a decrease of 2.7% versus the prior year with an operational increase of 4.2% and a negative impact from currency of 6.9%. Domestic sales increased 5.2%; international sales decreased 12.0%, which reflected an operational increase of 3.0% and a negative currency impact of 15.0%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 11.0%, domestic sales increased 18.1% and international sales increased 3.3%.*
Worldwide operational sales growth was driven by new products and the strength of core products. New product sales growth was negatively impacted by lower sales of OLYSIO®/SOVRIAD® (simeprevir) due to competitive entrants. Strong growth in new products include INVOKANA®/INVOKAMET® (canagliflozin), for the treatment of adults with type 2 diabetes; IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, or blood cancers; XARELTO® (rivaroxaban), an oral anticoagulant; and ZYTIGA® (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer.

Additional contributors to operational sales growth were STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis; INVEGA® SUSTENNA®/XEPLION®/TRINZA® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults; CONCERTA® (methylphenidate HCI), for the treatment of attention deficit hyperactivity disorder; and SIMPONI®/SIMPONI ARIA® (golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases.

Return to headline | Return to top
Johnson & Johnson (JNJ) Pushes Higher on Solid Results; Stock Moves Above 200 Day MA

Jan 26, 2016 | Street Insider

Johnson & Johnson (NYSE: JNJ) is seeing solid action following earnings this morning and notably shares just crossed above its 200 day moving average, an important technical indicator. Shares last traded at $99.68, up 3.4%.
Johnson & Johnson reported Q4 EPS of $1.44, $0.02 better than the analyst estimate of $1.42. Revenue for the quarter came in at $17.8 billion versus the consensus estimate of $17.88 billion. The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion reflecting expected operational growth in the range of 2.5% to 3.5%. Excluding the impact of acquisitions, divestitures and hepatitis C sales, operational sales growth is expected to be in the range of 4.5% to 6.0%. Additionally, the company announced adjusted earnings guidance for full-year 2016 of $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to 7.7%
Analyst Danielle Antalffy of Leerink Partners said the higher other income was likely largely tied to the October close of the Cordis divestiture did add ~$0.40 to EPS relative to their estimates. This, howeve,r was largely offset a ~$0.10 drag from FX and a ~$0.35 drag from significantly higher OpEx across both SG&A and R&D.

Drivers of the negative operating leverage in the quarter are likely to be a key question, the analyst said. However, they are more encouraged by the solid operational sales growth performance in the quarter, particularly given the just-announced restructuring initiative that should position the company for dramatically improving operating leverage from here.

Return to headline | Return to top
Leerink Partners Raises Price Target on Johnson & Johnson (JNJ) Following 4Q Earnings

Jan 27, 2016 | Street Insider

Leerink Partners reiterated an Outperform rating on Johnson & Johnson (NYSE: JNJ), and raised the price target to $120.00 (from $115.00), following the company's 4Q earnings report. JNJ's 2015 EPS benefitted meaningfully from higher other income tied to divestitures. 2016 EPS estimate moves to $6.50 (+5%) from $6.40 previously, with better operating leverage and lower share count through buybacks offsetting ramping FX headwinds.
Analyst Danielle Antalffy commented, "For JNJ, 2015 EPS benefitted meaningfully from higher other income tied to divestitures, including the October sale of Cordis. But this incremental income was largely reinvested in the business, driving negative operating leverage as JNJ discretionarily ramped investment in both internal and externally partnered R&D programs which should set the stage for the company to drive steady sales growth acceleration back toward the mid-single-digit range and more in line with the company’s goal to grow at or above the broader healthcare markets. Now in 2016, with incremental investments in future growth drivers already made in 2015, JNJ is well-positioned to drive more meaningful positive operating leverage – the company is currently guiding to 200+ bps y/y. In Medical Devices specifically, 4Q15 saw positive sales growth trends that are likely to continue to improve in 2016 and beyond as that business returns to atmarket growth in the mid-single-digit range on the back of new product launches and the anniversary of recent divestitures that should help offset well-vetted headwinds across other businesses longer term."
For an analyst ratings summary and ratings history on Johnson & Johnson click here. For more ratings news on Johnson & Johnson click here.
Shares of Johnson & Johnson closed at $101.18 yesterday.

Return to headline | Return to top
Johnson & Johnson Profit Advances 4% In Q4

Jan 26, 2016 | RTT News

Johnson & Johnson ( JNJ ) announced earnings for its fourth quarter that increased compared to the same period last year.
The company said its bottom line totaled $4.04 billion, or $1.44 per share.
This was higher than $3.89 billion, or $1.37 per share, in last year's fourth quarter.
The company said revenue for the quarter fell 2.4% to $17.81 billion. This was down from $18.25 billion last year.
Johnson & Johnson earnings at a glance:
-Earnings (Q4): $4.04 Bln. vs. $3.89 Bln. last year.
-Earnings Growth (Y-o-Y): 3.9%
-EPS (Q4): $1.44 vs. $1.37 last year.
-EPS Growth (Y-o-Y): 5.1%
-Analysts Estimate: $1.42
-Revenue (Q4): $17.81 Bln vs. $18.25 Bln last year.

-Revenue Change (Y-o-Y): -2.4%

Return to headline | Return to top
Johnson & Johnson beats profit expectations, but comes up shy on sales

Jan 26, 2016 | Morningstar

Johnson & Johnson (JNJ) reported Tuesday fourth-quarter earnings that rose to $3.22 billion, or $1.15 a share, from $2.52 billion, or 89 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.44, above the FactSet consensus of $1.42. Sales declined 2.4% to $17.81 billion, just shy of the FactSet consensus of $17.88 billion, with a 12% decline in international sales offsetting an 8% increase in the U.S. Sales in its consumer division declined 7.9% to $3.32 billion, missing the FactSet consensus of $3.5 billion. The drug and consumer products company said it expects 2016 sales of $70.8 billion to $71.5 billion, below the FactSet consensus of $71.94 billion. "As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in," Chief Executive Alex Gorsky said. The stock, which was still inactive in premarket trade, has lost 3.5% over the past three months while the Dow Jones Industrial Average has lost 9.4%.

Return to headline | Return to top
J&J (JNJ) Beats on 4Q Earnings but Misses on Revenues January 26, 2016

Jan 26, 2016 | Zacks

Johnson & Johnson (JNJ - Analyst Report), the bellwether of healthcare companies, has a strong presence in the pharmaceutical, medical devices and consumer care markets across the world. This New Jersey-based company is well known for its baby-care products and brands like Tylenol in addition to drugs like Remicade and Concerta.
However, like many of its peers, JNJ is facing generic competition and pricing pressure for some of the products in its pharmaceutical segment. Moreover, growth rates in the medical devices market have tempered due to headwinds in the form of austerity measures, pricing pressure and a slowdown in elective surgeries. JNJ also had issues with its consumer segment manufacturing facilities. Another major headwind is the impact of the strengthening dollar.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential, progress in resuming full supply of consumer segment products that had been recalled and performance of new products apart from the usual top-and bottom-line numbers.
JNJ has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 1.89%. Estimates have, however, been revised downwards for 2016.
Currently, JNJ has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: JNJ beat on fourth quarter earnings - the company reported EPS of $1.44 while our consensus called for EPS of $1.42.
Revenues Miss: Revenues lagged expectations. Johnson & Johnson posted revenues of $17.8 billion, compared to our consensus estimate of $17.9 billion.
Key Stats: J&J expects 2016 earnings in the range of $6.43 - $6.58 per share. The Zacks Consensus Estimate currently stands at $6.35 per share.
Check back later for our full write up on this JNJ earnings report later!

Return to headline | Return to top
Johnson & Johnson Kicks Off 2016 With Solid Earnings and Guidance

Jan 26, 2016 | 24/7 Wall Street

Johnson & Johnson (NYSE: JNJ) reported its fourth-quarter financial results before the markets opened on Tuesday. The company posted $1.44 in earnings per share (EPS) on $17.8 billion in revenue, which compares to consensus estimates from Thomson Reuters of $1.42 in EPS on revenue of $17.88 billion. The same period from the previous year had $1.37 in EPS on $18.25 billion in revenue.
Operational sales results increased 4.4% and the negative impact of currency was 6.8%. Domestic sales increased 8.0%. International sales decreased 11.7%, reflecting operational growth of 1.2% and a negative currency impact of 12.9%.
Also in the quarter, the acquisition of Novira Therapeutics, a privately held clinical-stage biopharmaceutical company developing innovative therapies for curative treatment of chronic hepatitis B virus infection, was completed.
In terms of 2016 full-year guidance, the company expects EPS in the range of $6.43 to $6.58 and sales of $70.8 billion to $71.5 billion. The consensus estimates that call for $6.18 in EPS on $70.12 billion in revenue for the full year.
Alex Gorsky, chairman and CEO, commented on earnings:
“Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands. As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in.”
He added:
I want to thank all of our colleagues for contributing to these results through their commitment and dedication to the people around the world who rely on our products.
So far in 2016, this company has outperformed the broad markets, with the stock down 6% year to date. Over the past 52 weeks, the stock is only down 3%.
Shares of Johnson & Johnson closed Monday down 0.4% at $96.40, with a consensus analyst price target of $108.00 and a 52-week trading range of $81.79 to $105.49. Following the release of the earnings report, the stock was up 0.8% at $97.15 in early trading indications Tuesday.

Return to headline | Return to top
Johnson & Johnson Finishes a Tough 2015

Jan 26, 2016 | The Motley Fool

Healthcare giant Johnson & Johnson (NYSE:JNJ) has worked hard to establish itself as the preeminent conglomerate in the industry, using its exposure to pharmaceuticals, medical devices, and over-the-counter consumer remedies to its best advantage. Yet like consumer giant Procter & Gamble (NYSE:PG), J&J has struggled recently because of the strong U.S. dollar, which has weighed on both companies' ability to grow sales and earnings.
Coming into Tuesday's fourth-quarter financial report, investors in Johnson & Johnson expected to see some downward pressure on revenue, and the company did a good job of overcoming those pressures to produce bottom-line growth for the quarter. Still, with full-year sales and adjusted earnings per share falling, J&J investors want the company to do more in 2016. Let's look more closely at Johnson & Johnson and what its latest results say about its prospects over the coming year.
J&J: Looking healthier?
The same trends that investors have seen throughout 2015 showed up in Johnson & Johnson's fourth-quarter report, but arguably not to the same extent as in past quarters. Revenue for the quarter once again fell year-over-year, but only by 2.4% to $17.8 billion. The company's bottom line actually jumped 28% to $3.22 billion, largely due to a nearly $2.2 billion swing in its other income/expense line. Even after adjusting for one-time items, earnings of $1.44 per share topped analysts' consensus forecast by $0.02.
Yet the strenthening U.S. dollar continued to weigh on Johnson & Johnson. The company said that its quarterly revenue took a hit of 6.8 percentage points from currency issues, wiping out a 4.4% operational gain in sales. Although domestic sales rose 8%, international sales plunged 11.7%, thanks to 13 percentage points of downward pressure from the strong dollar. After factoring out currencies, hepatitis C-related sales, and one-time items like acquisitions and divestitures, its worldwide sales were actually up 6.5%.
Among J&J's three main business units, the pharmaceutical segment was the only one to show growth in dollar terms, edging up 0.8% thanks in large part to a nearly 13% rise in U.S. sales. The medical devices unit was relatively strong in the U.S., rising 6.7% domestically, but weak international results pulled the unit's overall sales down 3.3%. The consumer segment brought up the rear with declines both worldwide and domestically, adding up to a 7.9% drop in overall revenues for the unit. Those consumer results were consistent with the sales declines that Procter & Gamble reported in its latest quarter, stemming in part from currency issues but also reflecting challenges in organic growth.
Johnson & Johnson pointed to several winning product lines. Over-the-counter drugs Tylenol and Motrin helped the consumer segment, and J&J once again called out diabetes drug Invokana and plaque-psoriasis treatment Stelara as helping its sales growth in the pharmaceutical arena. In medical devices, the company benefited from sales of endocutters and biosurgical products, as well as insulin pump products and various cardiovascular and orthopedic devices.
For the full year, J&J's sales fell 5.7% to $70.1 billion, with currency issues costing it 7.5 percentage points of growth. Adjusted net income also fell to $17.4 billion, dropping almost 5% and producing adjusted earnings of $6.20 per share.
What's ahead for Johnson & Johnson?
CEO Alex Gorsky characterized 2015 as providing "strong underlying growth" despite currency headwinds. Gorsky says he remains convinced that 2016 will keep positive momentum going, arguing that "our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth."
Johnson & Johnson's guidance made it clear, though, that the robust dollar will continue to play a key role in holding back growth. The company predicted that 2016 sales will come in between $70.8 billion and $71.5 billion, up 2.5% to 3.5% on an operational basis, but implying a roughly two percentage point hit from currencies. Similarly, adjusted 2016 earnings of $6.43 to $6.58 per share would be up 5.3% to 7.7% on an operational basis.
One key aspect to J&J's future is how its restructuring will affect its performance. A week ago, the company said it would restructure some of its medical devices businesses in order to encourage innovation and address unmet needs of patients. Johnson & Johnson hopes to generate as much as $1 billion in annual savings from the measures by the end of 2018, which could help immensely in supporting earnings growth.
Investors were comfortable with Johnson & Johnson's results, sending the stock up 1% in pre-market trading after the announcement. With solid organic growth prospects, all Johnson & Johnson needs to do is to outlast the dollar's strength to see its true performance show up more clearly in its financials in 2016 and beyond.
Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the world as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they've tripled the stock market's return over the last 13 years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Return to headline | Return to top
What Johnson & Johnson’s Earnings Mean for Biotech Stocks

Jan 26, 2016 | Barron's

By Ben Levisohn

This morning, Johnson & Johnson was the first multi-national drug company to report 4Q15 results, which included a worldwide pharma sales growth of +6.5% y/y, with the US pharma business strong at +12.7% and OUS -0.9% y/y. We note that FX had a negative impact on sales for all of 2015 and is poised to play an incrementally negative role in 2016, and as a result some biotech companies have provided guidance that includes currency headwinds. Indeed, Celgene noted FX as a factor that held them back from increasing 2020 targets, and Alexion Pharmaceuticals in particular has indicated FX may impact 2016. Also important to US biotech companies, Johnson & Johnson reported a +8% Y/Y operational sales increase in the US and guided to a +5.5% WW organic operational sales growth in 2016.
Key takeaways from the Johnson & Johnson call for our coverage:
[1] Pharma sales helped by extra selling days: 2015 included an extra shipping week (albeit a holiday week) that contributed to 4Q and annual sales growth comps.
[2] Still interested in acquiring: Johnson & Johnson’s strong balance sheet will allow the company to drive 50% of future growth through M&A transactions, which suggests the M&A trend in healthcare has room to continue into 2016. In the Q&A, mgmt stated that 2015 market conditions were “premium priced,” but they now see attractive opportunities.
[3] Zytiga read across to Medivation: WW Zytiga sales were $581m (below StreetAccount consensus $590m), a decrease of -2.4% y/y (+5.3% y/y cc) driven negative by FX impact. US Zytiga sales increased +3.6% q/q that Johnson & Johnson attributed to strong US market growth, partially offset by market share decline. We think this implies Xtandi demand growth will be in-line to better than the 4% q/q demand growth that we believe is the current expectation based on weekly Rx trends. Further, Johnson & Johnson doesn’t expect a generic Zytiga in 2016.
[4] Biosimilars: The US Remicade patent expires in Sep 2018, but current biosimilar competition in other markets has not been severe, which supports mgmt’s expectation that US docs will not switch patients who are responding well to branded Remicade.
[5]Drug pricing. Mgmt passed on predicting new drug pricing trends for 2016-17, but noted that pharma makes up only 12% of the total US healthcare spend. This aligns with our view that killing pricing power for innovative products will hinder new advances without meaningfully bending the cost curve.

Shares of Johnson & Johnson have gained 4% to $100.27 at 2:19 p.m. today, while Alexion Pharmaceuticals has fallen 1.3% to $152.55, Celgene has declined 0.5% to $106.17, and Medivation is off 3.7% at $35.21. The iShares Nasdaq Biotechnology ETF (IBB) has ticked up 0.1% to $283.33.

Return to headline | Return to top
Medical device sales slide for Johnson & Johnson

Jan 26, 2016 | Mass Device

By Brad Perriello

Sales for Johnson & Johnson‘s (NYSE:JNJ) medical device business, the world’s largest medtech operation, slid for the 4th quarter and 2015, the healthcare conglomerate said today.
J&J’s medical devices business put up sales of $6.43 billion for the 3 months ended Dec. 31, 2015, down -3.3%. Full-year sales were $25.14 billion, down -8.7%.
New Brunswick, N.J.-based Johnson & Johnson posted overall profits of $3.22 billion, or $1.15 per share, on sales of $17.81 billion for the quarter. That amounts to a 27.5% bottom-line increase on a -2.4% sales decline.
Full-year profits were $19.20 billion, or $5.48 per share, on sales of $70.07 billion, for a -6.6% profit slide on a -5.7% sales decline.
Still, Johnson & Johnson managed to beat the consensus earnings forecast on Wall Street for both periods. Adjusted to exclude 1-time items, Q4 earnings per share were $1.44, 2¢ ahead of The Street. Full-year adjusted EPS came in at $6.18 each, also 2¢ above the consensus.

JNJ shares were up slightly in pre-market trading at $96.76 apiece today.

Return to headline | Return to top
J&J hints at 'bold steps' in device deals in 2016, details 5 device collaborations

Jan 26, 2016 | FiercePharma

By Stacy Lawrence

After disclosing a major restructuring of its medical device business last week, Johnson & Johnson ($JNJ) tried to refocus on the future of that group on its annual earnings call. It emphasized doing more deals to acquire platforms for growth, as well as funneling more resources to high revenue growth device groups.
The healthcare and consumer conglomerate has already been working on making good on that commitment. Earlier this year, J&J disclosed 22 new partnerships, with at least 5 of these in devices.
These included collaborations with HistoSonics to use its noninvasive soft tissue ablation technology to treat solid tumors that aren't good candidates for surgical resection such as liver and pancreatic cancer; Carbon 3D to develop custom surgical devices using its technology to pool resin instead of printing it; and Northwestern University on an approach to atrial fibrillation that uses computational phase mapping and catheter ablation to target an underlying molecular mechanism. That last one is via J&J business Biosense Webster and is expected improve outcomes for catheter ablation to treat persistent AF
They also detailed two deals through DePuy Synthes, a J&J company focused on surgery and orthopedics: a partnership with Brainlab to create a next-gen knee surgical navigation system and with Medos International research subsidiary Rainbow Medical to develop a solution to decreasing back pain and modulating disc degeneration.
J&J has an appetite for more major, innovative device deals--highlighting its acquisition of atrial fibrillation startup Coherex Medical and robotic surgery deal with Google Life Sciences (now known as Verily) as examples.
"Our recent acquisition of Coherex Medical in the area of atrial fibrillation and the surgical deal with formerly Google Life Sciences are examples of the type of focused and strategic investments that you will see us make more of in the future," said J&J chairman and CEO Alex Gorsky on a Jan. 26 conference call.
"Our goal is to reach more patients, outperform the markets in which we compete and consistently identify bill and acquire new platforms for growth. Moving forward into 2016, we will continue to take bold, but appropriate, steps to put our medical device business in the best position for our shareholders."
Gorsky also noted that J&J will "double down" on its top performing medical device segments including endocutters and electrophysiology. He said the surgical stapling endocutters are J&J's "fastest growing platform in or medical devices segment." J&J also noted its biosurgical, orthopedics reconstruction and insulin pump businesses as the primary device contributors to operational growth.
But overall for 2015, J&J's global medical device sales were down 8.7% from the prior year to $25.1 billion.

Moving forward, summed up Gorsky, "Our priority in medical devices is accelerating growth to the strategic investments in innovation and by transforming our go-to-market models."

Return to headline | Return to top
J&J's new launches deliver, but overall sales fall short on hep C, strong dollar

Jan 26, 2016 | FiercePharma

By Carly Helfand

Johnson & Johnson's ($JNJ) hep C sales have been nosediving, and the fourth quarter provided more of the same on that front. But in the quarter, a strong dollar took a toll on the company's top line, too, dragging sales below analyst estimates.
The pharma giant's top line sank 2.4% to $17.81 billion in Q4, it said, missing Wall Street's $17.88 billion prediction. But stripping out the impact of acquisitions and sell-offs--as well as its hep C treatments, which plummeted 86.3%, thanks to hefty new competition from Gilead ($GILD) and AbbVie ($ABBV)--Q4 sales grew 4.4%, J&J said. Currency had a negative impact of 6.8%.
Adjusted earnings, on the other hand, beat out analyst expectations, coming in at $1.44 to best a $1.42 forecast.
While hep C therapy Olysio may have been hurting, other new drugs continued to expand by leaps and bounds. Worldwide sales of oncology drug Imbruvica more than doubled, going to $235 million from $92 million in 2014's Q4. Diabetes therapy Invokana and its combo sister Invokamet also skyrocketed, vaulting ahead by 85.1%; the anti-inflammatory treatment Stelara jumped 36.1%, too.
Overall, these quick-launching meds helped bring 2015 pharma sales to $31.4 billion, an operational increase of 4.2%, J&J said. And with a lot of these newer drugs, the company expects to snag new indications in 2016, promising more sales.
But even with those label expansions, the new launches can't keep up this pace forever, CFO Dominic Caruso acknowledged on the company's earnings call. The New Jersey drugmaker predicted 2016 full-year sales between $70.8 billion and $71.5 billion, and while it expects that to include "healthy growth … from pharma," it'll be a "slightly lower rate of growth" compared with 2015 as the newcomers begin to mature, he said.
As CEO Alex Gorsky stressed, however, the company has historically generated half its growth from M&A--and he expects that proportion to hold true in the future. Last year, the market for pickups "was premium-priced," he told investors, pointing out J&J's commitment to discipline when it comes to dealmaking. But "we remain very active in a number of different areas, and while we didn't necessarily close on a larger deal, I would not assume we were not engaged and involved," he said.
J&J has the resources to make some big moves in the new year, too. The company boasts a "higher level of cash than we typically hold," Caruso said, and it's "actively looking for the right opportunities to deploy that capital."

Meanwhile, J&J is working on restructuring its lagging medical device business, which posted an 8.7% sales slide for 2015. Last week, it announced plans to cut 3,000 jobs in a bid to save $1 billion.

Return to headline | Return to top
Johnson & Johnson (JNJ) Stock Pops Upon Strong Profits

Jan 27, 2016 | Bidness Etc

Johnson & Johnson (NYSE:JNJ) stocks surged around 4.5% during midday trade yesterday, as the company announced a significant 28% increase in profits for the fourth quarter of 2015, beating analysts’ consensus. The company managed to report higher fourth-quarter profit despite sales being affected by strong dollar during the quarter.
"We're pleased with the results," the Chairman and CEO Alex Gorsky told analysts during the earnings conference call. "We're optimistic about the opportunities in health care and the strength of our business."
Johnson & Johnson’s net earnings increased to $3.2 billion, which translates to earnings of $1.15 per share for the fourth quarter — a major jump from the earnings of $2.52 billion or 89 cents per share reported in the same quarter last year. Earnings after adjustments stood at $1.44 per share, which beat analysts’ estimates of $1.42 per share, as reported by the company.
Although J&J reported impressive profits, its sales figures turned out to be disappointing. Sales dropped 2.4% to $17.81 billion from $18.25 billion. According to analysts’ consensus compiled by Thomson Reuters, the company was expected to report revenue of $17.88.
“Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our pharmaceutical business and iconic brands,” Mr. Gorsky, said in a statement. “As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in.”
The negative impact of strong dollar was partly set off by the sale of Cordis heart devices unit in October. The company reported a $1.21 billion gain due to the divesture, which was part of its restructuring plan. Cordis unit accounted for approximately 25% of device sales. The sales of medical devices and diagnostic equipment fell 3.3% to $6.43 billion in the quarter.
The consumer products unit, which faced a severe blow in 2009 due to a dozen recalls, finally seems to be on the path to recovery, according to a company statement. Sales of consumer health products fell to $3.32 billion in the fourth quarter — an almost 8% decline compared to same period last year.
The prescription drugs unit recorded its best performance in the quarter, being the only segment which reported higher sales. Sales from the unit saw a minute 0.8% increase to $8.06 billion. The increase was mainly driven by impressive sales of Remicade, Stelara ad Xarelto.
"It was a decent quarter, with the bad news in devices offset by good news in drug sales and the announced cuts in the devices businesses," noted Erik Gordon, a professor and pharmaceuticals analyst at University of Michigan's Ross School of Business. "All eyes will be on the pharma business and whether the big sellers can show consistent sales increases."
For full year 2015, the company reported a 5.6% drop in net income to $15.41 billion, or $5.48 per share. Revenue for 2015 fell 5.7% to $20.07 billion.

Return to headline | Return to top
J&J CEO: Patients have higher expectations

Jan 27, 2016 | Medical Marketing & Media

Johnson and Johnson CEO Alex Gorsky told investors that the healthcare industry's investment in value-added services, like patient support programs, remains in “early innings.”
His remarks, made during the company's year-end earnings call on Tuesday, signal an increased willingness from the drug and device giant to supplement its product portfolio with more services and partnerships.
Gorsky affirmed J&J's role in implementing value-added services in response to a question from an analyst.
“Overall, we feel that we're still in the very early innings of what I'd call is the market evolution,” Gorsky said. “The patient is weighing in much heavier in these decisions, as they take on higher co-pays, as they can get more information that's available online.
“Frankly, they have just higher expectations about their ability to participate in the healthcare decision-making process,” he added.
The pharma industry has increasingly looked toward “beyond the pill” services as a way to satiate demand for outcomes-oriented care, spurred by the Affordable Care Act, the empowerment of consumers through online resources, newly cost-conscious patients who are concerned about the higher rates of cost-sharing they face and pressure on drug pricing from pharmacy benefit managers.
DePuy Synthes, J&J's orthopaedic and neurosurgery devices arm, in November launched a comprehensive outpatient solutions program with the goal of improving patient outcomes in joint replacement.
The support program—dubbed Depuy Synthes Advantage—includes a suite of educational services to impart best practices for providers on how to facilitate faster recovery times and better outcomes.
It also includes a subscription-based software service known as CareSense, which is aimed at allowing providers to more easily collect data on patient outcomes, patient satisfaction and the costs of care in outpatient services.
Hospital systems want to know how they can create better outcome-oriented partnerships with pharma companies, Gorsky said.
“What we see is an evolution more towards a business-to-business relationship, where customers want to see innovation,” he said. “[Those businesses want to know:] how can we work together as part of a broader partnership that ultimately is focusing not just on a product sell, but actually on an outcome, on an episode of care for the patient. We are seeing those organizations becoming more and more interested. And that's why we're adapting to make sure that we're part of that.”
Johnson & Johnson's medical device business reported sales of $25.1 billion for 2015—a decrease of 8.7% from 2014. J&J announced last week that it will cut 3,000 jobs in the same business unit over the next two years.

Return to headline | Return to top
Johnson & Johnson: Like Clockwork

Jan 26, 2016 | Seeking Alpha

Summary
I have covered the power of the dividend from JNJ long term and feel it is one of the most reliable stocks you can own.
Q4 earnings are out and I discuss the key metrics and what they mean.
Currency is an issue but the company is pumping money into R&D and making moves allowing it to grow earnings at a strong clip.
The bottom line is this is a dividend growth machine and you can bet the dividend is going up in 2016 taking into account guidance.
Johnson & Johnson (NYSE:JNJ) is one of the best-known companies on Earth and one that I have been bullish on long term as a dividend growth name. This is because the chances are you have at least one of its products in your home, and the company continues to grow earnings. As a stock, I feel I can never go wrong recommending it. It just continues to chug along, paying its sizable and consistently growing dividend. It is one of the most reliable companies I have ever come across. Look the name is not a get rich quick biotech, or a super growth name. It is a slow growing, dividend growth play. There are many names you could argue offer 'better' growth, but may trade with more beta. But this company has infiltrated our lives in many ways. Simply put, its products are everywhere.
Back in 2015, I penned a piece describing why I loved this stock as a dividend growth company. I invite you to review the power of the company's dividend. It is the reason to own this name. If you have reviewed the above link, you have an understanding of the company structure and why it is a long-term powerhouse. This is the reality and that is why I got behind it. It is a stable, slow growing, reliable play. For those on the sidelines, you have to pick your spots. I actually think with the stock back under $100, we may have a potential level to add to holdings here. To ensure this is correct, we look for two things. First, general market weakness, and second, we take into account the company's recent performance highlights. I want to address the latter in this article.
Johnson & Johnson just reported Q4 results. The company's most recent quarter saw sales of $17.81 billion. While this sounds like a lot, I was surprised to see that these sales are down 2.4% year over year. It also missed estimates slightly by $70 million. This is the reality, so bottom line is that sales are declining, aren't they? When we break this out, we start to see clarity on this issue. Like many other domestic US companies, the changes in currency year over year are wreaking havoc on the absolute numbers. That fact is that businesses with a lot of international business are hurting from the stronger dollar. Operational sales results increased 4.4% and the negative impact of currency was 6.8%.
On an absolute basis, domestic sales increased 8.0%, while international sales decreased 11.7%. What the heck is going on here? Well, this drop in international sales reflects actual operational growth of 1.2% but a negative currency impact of 12.9%. Johnson & Johnson is perhaps one of the hardest hit companies by negative currency impacts I have seen thus far early in this earnings season. But the company itself continues to chug along. On an operational basis, worldwide sales decreased 5.7%, domestic sales increased 2.6% and international sales decreased 13.1%. This excludes the impacts of acquisitions and sales over the last year.
Taking into account the company's operational expenses and sales data, the company saw net earnings come in at $3.2 billion. Taking into account shares outstanding, this translates to net earnings per share of $1.15. After taking into account special items, adjusted net earnings were $4.0 billion and adjusted earnings per share were $1.44. The adjusted earnings per share actually declined year over year 7.5%. On an operational basis, adjusted diluted earnings per share increased 5.1%. The $1.44 in adjusted earnings represented a year-over-year increase and this beat analyst estimates by $0.02. The company continues to deliver. It is easily covering its dividend. It also is focused on its long-term growth. Alex Gorsky, chairman and CEO, said:
"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands. As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in. I want to thank all of our colleagues for contributing to these results through their commitment and dedication to the people around the world who rely on our products."
I am pleased with these results, but it doesn't matter where the company has been, it matters where it is going. The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion. This, of course, reflects expected operational growth in the range of 2.5% to 3.5% and operational sales growth is expected to be in the range of 4.5% to 6.0%. Factoring in expected expenditures, adjusted earnings guidance for full-year 2016 is $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to 7.7%. That is strong.
What we need to be most concerned with is the company's pipeline. I've heard in numerous comments on my work that this is one of the key issues. There is some truth to that, but the company continues to push forward with ongoing trials and products in all phases of development. While core products account for a large portion of revenue, future revenues will come from innovation. The company is continuing to invest heavily in R&D. Couple this with a dividend yield that is still high at 3.1%, and this is a stock I feel very comfortable recommending here at $97 per share based on the valuation, the pipeline work and of course its yield. The dividend goes up like clockwork, most recently being raised to $0.75 quarterly, or $3.00 a year. It's a stock that everyone should consider because it is just that reliable.

Return to headline | Return to top
CC – J&J 4Q15

Jan 27, 2016 | Close Concerns

By Kelly L. Close

Greetings from San Francisco, where 4Q15 earnings season is officially underway! Our missive is headlined by our coverage of J&J financial update (Invokana sales $372 million, up 85% YOY; LifeScan/Animas down 2% operationally) - BTW, we were thrilled to see that some of you that have our new Closer Look app opened this report at 2 PM PST : > – and news that Novo Nordisk has launched Tresiba (insulin degludec) in the US and has secured Lowest Brand Co-pay status on the CVS national formulary.
...
1. J&J 4Q15 - SGLT-2 Invokana sales of $372 million in 4Q15, $1.3 billion in 2015; Slight TRx gains despite EMPA-REG results; LifeScan/Animas sales down 2% operationally; No commentary on Vibe/Calibra/AP - We’re back with our full coverage of J&J’s 4Q15 update from this morning. Invokana (canagliflozin) and Invokamet (canagliflozin/metformin) posted sales of $372 million in 4Q15 and $1.3 billion in 2015. Quarterly sales were up 85% year over year (YOY) as reported (87% in constant currencies) and 9% sequentially; full-year sales more than doubled from approximately $500-$600 million in 2014. TRx for Invokana in the US type 2 diabetes market (excluding insulin and metformin) was 6.5%, up slightly from 6.3% in 3Q15. TRx among US endocrinologists fell to 12.8% from 13.1% in 3Q15, while TRx among primary care physicians rose from 5.6% to 5.8%. The positive EMPA-REG OUTCOME results for Lilly/BI’s Jardiance (empagliflozin) do not appear to have had a major impact on Invokana’s prescription share thus far, and management expressed confidence during Q&A that the results will be viewed primarily as an SGLT-2 inhibitor class effect. Other highlights on the drug side included a brief mention of Janssen’s early-stage diabetes and obesity efforts during prepared remarks and more big-picture discussion of drug pricing during Q&A. There were some platitudes: “All of us know that the healthcare system, not only here in the United States but around the world, is complex … we want to be part of the solution.” On the medical device side, we continue to find global LifeScan/Animas results disappointing – sales for the quarter totaled $480 million, declining 7% as reported and 2% operationally YOY while sales for the full year ($1.9 billion) marked the lowest total since 2004 ($1.8 billion). The international business was particularly hard hit (down 10% in 4Q and 14% in FY15) though the segment did see 5% (4Q) and 1% (FY) operational growth that reflects major negative currency headwinds. Management did not share any updates on the pipeline front whatsoever – quite disappointing! As a reminder, guidance in 2Q15 called for a launch of J&J’s Calibra Finesse bolus-only insulin delivery patch device in 2016 and we hope to here an update on the team’s artificial pancreas project next week at ATTD 2016. For more on J&J’s 4Q15, see our full report.

Return to headline | Return to top

Television Coverage

Bloomberg Surveillance Clip

Jan 26, 2016 | Bloomberg Surveillance

View Clip Here: http://app.criticalmention.com/app/#clip/view/19893036?token=1c367595-095f-44ec-9dd5-be3189a2b071
Rough Transcript: bloomberg surveillance. we have earnings for johnson & johnson. they did beat the bottom line. sales growth for the year, 4.5% to 6% is the forecast. in terms of revenue, we saw $17.8 billion in revenue. that just barely missed the estimate. the stock is down about .5%. michael: it is earnings season, and you have headlines. vonnie:

Return to headline | Return to top
Bloomberg GO Clip

Jan 26, 2016 | Bloomberg GO

View clip here: http://app.criticalmention.com/app/#clip/view/19893069?token=cbd68d43-9da2-43d1-b10e-6d10ad939262

Rough Transcript: time than procter & gamble and a pot down 20% after pulling off the biggest merger of all time in the chemicals industry. johnson & johnson meeting with q4 earnings of $1.44. we were looking for $1.42. johnson & Johnson shares down 6% year to date. still waiting for

Return to headline | Return to top
Bloomberg GO Clip

Jan 26, 2016 | Bloomberg GO

View clip here: http://app.criticalmention.com/app/#clip/view/19893086?token=cbd68d43-9da2-43d1-b10e-6d10ad939262

Rough Transcript: stephanie: you're watching "bloomberg go. johnson & johnson fourth quarter estimates boosted by drug blockbusters. with us now is dominic caruso, chief financial officer. j&j announced 3000 job cuts in the medical device division recently. i was not going to help you, going forward -- how is that going to help you going forward? dominic: you are referring to the restructuring we just announced. we think that restructuring is the right step to take to position the business. we are strengthening our go to market models and free up some resources that can be reinvested in the business to drive growth. we think it's the right move for this business. david: please take us through the relative growth in the three main areas. 7:24 AMbecause you've had some disparate growth levels there. dominic: sure. i couple of things. we have some acquisitions in investors that cloud the picture. to give you a perspective on it, our pharmaceutical business overall is about 11% growth. that's very strong. we did divest a product line early in the year which reduces that growth rate a little bit. about 11% in pharma. in the consumer business again, excluding acquisition to investors, about 4.2% growth. nice growth. in the medical device business, lower growth, about two point 5%, excluding acquisitions and investors. stephanie: in terms of specific drugs, what are you betting on? eli lilly and pfizer are making great strides. dominic: we have a strong from simple business, a big pipeline. we just announced we plan to file 10 new products by 2019, 7:25 AMeach of which have a $1 billion potential. the first of those that we just got approval for recently is an important product for multiple myeloma, which we think will be a big success. stephanie: given how global your business is, what's the impact of the strong dollar? dominic: the 2015, it's been a negative impact on sales around 7.5%. we are projecting based on current rates that impact would be as low as 1.5% going into 2016. david: you have the event of a strong balance sheet. what are you going to do with that cash? i know you have a stock buyback program, but that's not going to consume it all. dominic: would you have a strong balance sheet, and are always looking for ways to deploy capital in a way that creates value for shareholders. we pay a healthy dividend, always looking for acquisitions to bolster growth. we will do that at the right price on the right time. we are patient. in the meantime, we return cash to shareholders like you just mentioned with our $10 billion share buyback we are currently executing on. stephanie: what is your take on china? how bad is the economic slowdown? dominic: we have seen a slowdown in china. review china as a long-term play. obviously with the demographics there, that plays well with vehemence need for health care, that plays well for a business. to put it in perspective, china represents currently only about 5% of our sales. so any immediate slowdown or short-term economic conditions will not have a significant impact

Return to headline | Return to top
Bloomberg GO Clip

Jan 26, 2016 | Bloomberg GO

View clip here: http://app.criticalmention.com/app/#clip/view/19893174?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Rough Transcript: lauren went by three and also be just by cutting costs and these are cost cutting story's resident jostling johnson a lieutenant all the medical device business is selling nor missouri to renters and other drug so johnson johnson is looking more revealing growth story and the rest of the hour . wrestling companies out there is there really looking at a cost cutting story axiom .

Return to headline | Return to top
CNBC Squawk Box Clip

Jan 26, 2016 | CNBC Squawk Box

View clip here: http://app.criticalmention.com/app/#clip/view/19893048?token=cbd68d43-9da2-43d1-b10e-6d10ad939262

Rough Transcript: joining us now is chief financial officer atjohnson & johnson and also here cnbc reporter, meg terrell. will sales be below where wall street is, wall street looking for total of 71.844 and are you looking at something below that for the forecast? >> good morning, joe. thank for having me on this morning. you're right. we delivered above earnings expectations for this year and our guidance next year is also above earnings expectations. we quoted in a press release operational sales growth which i think becky is referring to up 2.5 to 3%. it would be about 1% to 2% including the impact of negative currency headwinds based on just 6:54 AMtoday's rates. >> why aren't analysts smart enough to figure out the currency adjustment. why are they still above your forecast? >> they may not update their models as frequently as we do. the last time we saw updated models was after your third quarter earnings back in october. >> safe looking haven. >> i'm curious to know how you're looking at the similar. people for cussed when you'll get competition. how do you run that with forecast you're giving. >> thanks for the question, meg. we're aware that's been written about biosimilars. our guidance for 2016 does not assume there will be a biosimilar in the u.s. as you know, meg, obviously the 6:55 AMbiosimilars are not ge n generi. >> currency a big thing. analysts have trouble modeling it. how should people think about the impact of currency. it's been really tough for the last few quarters for you guys and across the industry. >> we always provide constant currency guidance as well as currency effective guidance. to give you a perspective this past year, 2015, currency impact sales were roughly about 7%, 7.5%. pretty good significant hit. next year we're no deling that impact to be 1.5% but we'll see where currency lands but that's our expectation for 2016. >> you have a good handle on every sector of the world in consumers or how business is, i mean across china, asia, europe? can you comment on each? >> yeah, sure. we're seeing some slow down, for example, in china. a lot has been talked about there. but china is an important growth market for us. especially with the rise of consumer spending in china. but it's a long term play. just to put things in perspective, china represents about 5% of our sales today so any short term moments in their particular economic activity would not likely have a significant impact on us. we saw some slow down in europe but overall our sales growth for next year underlying operational sales growth is expected to be about the same as it was in 2015. >> okay. just real quickly why do you sell a billion dollars more in any given quarter than like in the previous quarter. christmas quarter you sell a billion dollars more. i can't figure -- what's seasonal about your business? >> well sometimes -- there's just ordering patterns for distributors and stock to do product launches.

Return to headline | Return to top
CNBC Squawk Box Clip

Jan 26, 2016 | CNBC Squawk Box

View clip here: http://app.criticalmention.com/app/#clip/view/19893162?token=1c367595-095f-44ec-9dd5-be3189a2b071
Rough transcript: johnson & johnson procht profi topping expectations. it did come out and say it sees its 2016 earnings above estimates. the cfo joined us earlier this morning. >> we delivered above earnings expectations for this year and our guidance next year sls above earnings expectations. we saw some slow down in europe but overall our sales growth for next year underline operational sales growth is expected to be about the same as it was in 2015.

Return to headline | Return to top
Brief CNBC Squawk Box Clip

Jan 26, 2016 | CNBC Squawk Box

View clip here: http://app.criticalmention.com/app/#clip/view/19894433?token=1c367595-095f-44ec-9dd5-be3189a2b071
Rough transcript: We’re talking about for the dow components adapted to report earnings scoring three and were the results exceed industry forecasts by the decline in net sales; Dupont and Johnson and Johnson each had a bottom line beat. The top line though had less of a beat, dollar, dollar dollar…

Return to headline | Return to top
Brief CNBC Squawk Box Clip

Jan 26, 2016 | CNBC Squawk Box Clip

View clip here: http://app.criticalmention.com/app/#clip/view/19894426?token=1c367595-095f-44ec-9dd5-be3189a2b071
Rough transcript: but i'm not calling the quarter. the quarter is not going to be that good. we know that. so maybe we say, wait a second, it could be lie 3m. J&J, didn’t think it would be that good, Procter, didn’t think it would be that good. All these companies did a little better than expected and their stocks love them.

Return to headline | Return to top
CNBC Squawk on the Street Clip

Jan 26, 2016 | CNBC Squawk on the Street

View clip here: http://app.criticalmention.com/app/#clip/view/19894393?token=1c367595-095f-44ec-9dd5-be3189a2b071
Rough Transcript: j & j is up 2%. how are you feeling about gorski these days? >> the medical device business was a real problem for me. they took the charge. they did have to fire a the lo of people. i've been waiting for them to rationalize that division. he has always said underperformers are going to have to pay. that's what he did. i think that will help the situation. waiting for him to be as tough as he indicated, and this may be the quarter where he is that tough, because -- if the live in the philadelphia area, the jersey area, you know that was gorski saying, all right, i've had enough, we're going to start doing better right now. so it was a significant charge that he took, and significant group of firings.

Return to headline | Return to top
CNBC Squawk on the Street Clip

Jan 26, 2016 | CNBC Squawk on the Street

View clip here: http://app.criticalmention.com/app/#clip/view/19895053?token=cbd68d43-9da2-43d1-b10e-6d10ad939262

Rough Transcript: shares up by one percent and finally on the drug sotheby's johnson and johnson posting mixed results revenues it folded short also hit by currency woes last week johnson johnson said it planned to restructure its underperforming medical devices business which includes the reduction of about 3000 job to over the next couple of years the company does the two thousand 16 earnings above wall street forecasts . even as a result continuing the impacted . by the strong dollar shares are you consider are by but three percent of terror some big beams currency analyst in your your your heart pumping one mungul also course are on the more arts at sotheby's the job reductions have been happening there that still frieda lawrence dow components are tackled new guys . does in my investors are giving a company that has now on the dollar something he and another river three one is the man

Return to headline | Return to top
Brief CNBC Squawk on the Street Clip

Jan 26, 2016 | CNBC Squawk on the Street

View clip here: http://app.criticalmention.com/app/#clip/view/19895031?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Rough Transcript: greatly appreciated. sara eisen, back to you. >> rick santelli, thanks very much. a barrage selfreports. 3m, j & j, procter & gamble, responsible for about a third of the gain, have been the best

Return to headline | Return to top
Brief mention on CNN Newsroom

Jan 26, 2016 | CNN Newsroom

View clip here: http://app.criticalmention.com/app/#clip/view/19897558?token=07a79926-f049-4b88-b85d-c1c1bdffa791

Rough transcript: we can't underestimate earnings though outside of that we had decent results this morning from johnson johnson procter and gamble in three and those are three dow components so that's helping a little bit of help.

Return to headline | Return to top
Countdown to the Closing Bell with Liz Claman Clip

| Fox Business

View clip here:http://app.criticalmention.com/app/#clip/view/19898028?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Rough Transcript: that's very interesting. they're having a very good quarter, and the stock added about 10% today. two other companies driving the dow today, 3m added 48 points to the dow, j&j adding 26 points to the dow. you can see the move there, pretty dramatic. j&j reporting earnings of $1.44 a share on revenues of $17.81 billion. both of these companies are struggling with the strong dollar, but they're certainly making investors happy today.

Return to headline | Return to top
Mad Money Clip

Jan 26, 2016 | CNBC

View clip here: http://app.criticalmention.com/app/#clip/view/19931602?token=cbd68d43-9da2-43d1-b10e-6d10ad939262
Rough Transcript: it. today the market rethinks. gained back half its losses. two more surprises, they were beauties, 3m and j & j, growth criticized of late, last quarter brought out sellers in both. one quarter does not a stock make, but you have to be impressed with how much better they are doing than we thought. that's the operation, than we thought. given how beaten both stocks were, no wonder they zoomed ahead $7.21

Return to headline | Return to top
Nightly Business Report Clip

Jan 27, 2016 | PBS

View clip here: http://app.criticalmention.com/app/#clip/view/19935961?token=ec73fed9-bdef-4ade-a4b7-ff2116edb453
Rough Transcript: attractive. it's a market we're very focused continuing the grow and profit in. >> higher sales helped p and g offset the effects of the stronger u.s. dollar which lowers profit margins on sales outside the united states. johnson and johnson was not as fortunate blaming currency issues for a drop in sales though it expects the issues to abate later this year. >> currency impacts. the sales were roughly about 7, 7.5%. for next year we're modelling that to be about 1.5%. we'll have to see where currency land, but that's our expectation for 2017. >> last week j and j announced 3,000 job cuts this medical devices, which was its biggest business. But now pharmaceutical sales are its biggest, and sales in that division were strong.

Return to headline | Return to top
Time Warner Cable News All Night Clip

Jan 27, 2016 | Time Warner Cable

View clip here: http://app.criticalmention.com/app/#report/view?1193136/token/ec73fed9-bdef-4ade-a4b7-ff2116edb453
Rough Transcript: points. nasdaq rose 49. s&p 500 gained 26. in the earnings line up, johnson and johnson isout with its quarterly report card. j&j sayprofit surged 28 percent to $3-point-2 billion dollars. that was better than expected. revenue declined, but that reflected theimpact of a stronger dollar.the company finally has nearly all of its products back on store shelves after being bruised by a troubling string of recalls dating back to 2009.

Return to headline | Return to top

Add recipients

Suggested