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J&J Q1 2017 Earnings Coverage

Traditional Coverage

(Update-1) Johnson & Johnson Lifts Forecast on Actelion Tie-Up
Apr 18, 2017 | Wall Street Journal
By Joshua Jamerson and Jonathan Rockoff

Johnson & Johnson JNJ -3.19% reported Tuesday that sales were hurt by greater rebating of some key prescription drugs in the U.S. and a slowdown world-wide in purchases of consumer-health products, while raising its forecasts for the year as it nears closing on its largest-ever acquisition.
Wall Street lower as Goldman Sachs and J&J results disappoint
Apr 18, 2017 | BBC News

US stocks opened lower after results from Goldman Sachs and Johnson & Johnson fell short of expectations.
(UPDATE-3) J&J's Weak First-Quarter Sales Show Why It Made a Megadeal
Apr 18, 2017 | Bloomberg
By Jared S. Hopkins

Johnson & Johnson’s disappointing first-quarter sales highlighted why the world’s largest health-care company made its biggest-ever deal earlier this year.
(UPDATE-2) Johnson & Johnson says pricing competition squeezing sales
Apr 18, 2017 | Associated Press
By Linda Johnson

Increased pressure to cut medicine prices and an industry-wide slowdown in consumer health product sales is hurting health care giant Johnson & Johnson.
Wall Street falls as Goldman, J&J results disappoint
Apr 18, 2017 | Reuters
By Yashaswini Swamynathan

Disappointing quarterly results from corporate heavyweights Goldman Sachs and Johnson & Johnson dragged down major Wall Street indexes on Tuesday.
Wall Street falls as Goldman, J&J weigh
Apr 18, 2017 | Reuters
By Chuck Mikolajczak

U.S. stocks declined on Tuesday, weighed down by a drop in Goldman Sachs and Johnson & Johnson in the wake of their quarterly results, while geopolitical tensions continued to fuel investor caution.
(UPDATE-3) J&J first quarter revenue misses estimates; new forecast includes Actelion
Apr 18, 2017 | Reuters
By Natalie Grover and Bill Berkrot

Johnson & Johnson on Tuesday reported disappointing pharmaceutical and consumer product sales as revenue missed analyst estimates, sending its shares sharply lower.
BRIEF-Johnson & Johnson Q1 earnings per share $1.61
Apr 18, 2017 | Reuters

Johnson & Johnson reports 2017 first-quarter results:* Q1 earnings per share $1.61 * Q1 sales $17.8 billion versus I/B/E/S view $18.02 billion * Q1 earnings per share view $1.76
Johnson & Johnson posts mixed quarterly results
Apr 18, 2017 | Financial Times
By Adam Samson

Johnson & Johnson on Tuesday said it logged a slimmer than expected rise in quarterly sales, but posted profits that topped Wall Street expectations.
Early movers: UNH, JNJ, BAC, HOG, NFLX, TSLA, CAB, BUFF & more
Apr 18, 2017 | CNBC
By Peter Shacknow

Johnson & Johnson – Johnson & Johnson beat estimates by six cents a share, with adjusted first-quarter profit of $1.83 per share. Revenue fell short of estimates. The health care company did raise its full-year forecast, and also said the acquisition of Actelion should be completed this quarter.
Johnson & Johnson Reports Mixed Results
Apr 18, 2017 | Fox Business

Dow component Johnson & Johnson reported an adjusted 1Q profit of $1.83 per share, topping the estimate for $1.77. Revenue for the company came in at $17.8 billion, also beating the estimate for $18.02 billion.
Johnson & Johnson Earnings Top, But Drug Sales Are A Drag
Apr 18, 2017 | Investor's Business Daily
By Allison Gatlin

Johnson & Johnson (JNJ) reported first-quarter earnings that were slightly better-than-expected, but revenue was a little light on weaker pharmaceutical sales. Shares of the diversified medical giant and Dow Jones industrial average component fell slightly in the premarket.
Johnson & Johnson Sees Little Impact In Key Area Despite Pfizer Competition
Apr 18, 2017 | The Street
By Armie Margaret Lee

In the first quarter of 2017, Johnson & Johnson (JNJ) saw "very little impact" from biosimilar competition to Remicade in the U.S., said chief financial officer Dominic Caruso on an earnings call Tuesday.
Johnson & Johnson Stock Falls on Mixed 1Q Results
Apr 18, 2017 | TheStreet
By Tony Owusu

Johnson & Johnson (JNJ) shares were down 0.5% premarket after the consumer brands company reported first quarter revenue that missed analysts' expectations due to lighter than expected pharmaceutical sales.
Is Johnson & Johnson At The Mercy Of The Business Cycle?
Apr 18, 2017 | Seeking Alpha
By Alessandro Pasetti

JNJ's Q1 figures were released today. Headline figures were decent. However, fundamentals mean little these days and growth prospects remain subdued. Its shares are driven by other factors.
J&J Q1 top line up 2%; earnings off 1%
Apr 18, 2017 | Seeking Alpha
By Douglas House

Johnson & Johnson (NYSE:JNJ) Q1 results ($M): Total Revenues: 17,766 (+1.6%); Consumer: 3,228 (+1.0%); Pharmaceutical: 8,245 (+0.8%); Medical Devices & Diagnostics: 6,293 (+3.0%).
J&J's 3.4% post-earnings decline leads healthcare lower; UNH a rare gainer
Apr 18, 2017 | Seeking Alpha
By Stephen Alpher

The company beat on the bottom line, but revenues fell short of estimates thanks a slowdown in pharmaceutical sales.
Johnson & Johnson beats by $0.07, misses on revenue
Apr 18, 2017 | Seeking Alpha

Johnson & Johnson (NYSE:JNJ): Q1 EPS of $1.83 beats by $0.07.
Johnson & Johnson (NYSE:JNJ) Posted Underwhelming Sales; Announces a $30 billion deal to Buy Actelion
Apr 18, 2017 | Benchmark Monitor

On Tuesday, Johnson & Johnson (NYSE:JNJ) posted underwhelming sales in the latest quarter, amid soft results in United States, also lifted its forecasts for the year, as it works to close the largest acquisition in the company’s history in an effort to drive growth.
Johnson & Johnson, Harley-Davidson Beat On Earnings, Miss On Sales
Apr 18, 2017 | Value Walk
By Michelle Jones

Johnson & Johnson and Harley-Davidson released their latest quarterly results before opening bell this morning. Johnson & Johnson posted adjusted earnings of $1.83 per share on $17.8 billion in revenue, compared to the consensus estimates of $1.77 per share and $18.02 billion. In the same quarter a year ago, the consumer products company reported $17.48 billion in revenue.
Johnson & Johnson (JNJ) Receives Consensus Rating of “Hold” from Analysts
Apr 18, 2017 | Watch List News
By Hanz Christensen

Johnson & Johnson (NYSE:JNJ) has been assigned a consensus recommendation of “Hold” from the nineteen brokerages that are covering the company. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have issued a buy rating on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $122.75.
Johnson & Johnson logs Q1 earnings beat, sales miss
Apr 18, 2017 | Mass Device
By Brad Perriello

Johnson & Johnson (NYSE:JNJ) topped Wall Street’s earnings forecast with its 1st-quarter results, but missed the sales expectation by more than a quarter billion dollars.
Johnson & Johnson Q1 Profit Tops Estimates; Lifts FY17 View
Apr 18, 2017 | RTT News

Drug giant Johnson & Johnson ( JNJ ) Tuesday reported a slight decline in first-quarter net earnings, while earnings per share increased with higher sales. Adjusted earnings topped analysts' estimates, while sales missed their view. Further, the company raised its earnings and sales outlook for fiscal 2017, including the estimated impact of the Actelion transaction.
Johnson & Johnson Q1 Profit Rises 4%
Apr 18, 2017 | RTT News

Johnson & Johnson (JNJ) released earnings for its first quarter that climbed from last year. The company said its bottom line rose to $5.04 billion, or $1.83 per share. This was higher than $4.85 billion, or $1.73 per share, in last year's first quarter.
J&J (JNJ) Beats on Q1 Earnings, Sales Miss Again
Apr 18, 2017 | Zacks

Johnson & Johnson (JNJ - Free 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.
J&J (JNJ) Q1 Earnings Beat Estimates, Pharma Sales Slow Down
Apr 18, 2017 | Zacks

Johnson & Johnson (JNJ - Free Report) reported mixed first-quarter 2017 results. While earnings beat expectations, sales missed the same due to a slowdown in pharmaceutical product sales. The drug and consumer products giant raised its 2017 sales and earnings outlook though only to include the impact of the pending $30 billion acquisition of Swiss biotechnology company Actelion Ltd. (ALIOF - Free Report).
Johnson & Johnson Q1 Earnings Mixed, Says Actelion Deal Will Close In Q2
Apr 18, 2017 | Stock News

Johnson & Johnson (NYSE:JNJ) early Tuesday posted mixed first quarter earnings results, but said its guidance remains unchanged as it works to fully integrate a big recent acquisition. The New Brunswick, NJ-based diversified healthcare giant reported Q1 earnings per share (EPS) of $1.83, which was $0.06 better than the Wall Street consensus estimate of $1.77.
Johnson & Johnson (NYSE:JNJ) Delivers Q1 EPS Beat, Boosts Guidance, Stock Is Up
Apr 18, 2017 | Stock Market Daily
By R Chandrasekaran

Johnson & Johnson (NYSE:JNJ) delivered better than expected earnings for the first quarter though its revenue disappointed investors. However, the company lifted its EPS and the top line outlook for the full year to reflect its Actelion acquisition impact. Following this, the stock is trading up in the pre-market trading on Tuesday.
Johnson & Johnson's stock falls after sales miss offset profit beat and raised outlook
Apr 18, 2017 | MarketWatch
By Tomi Kilgore

Johnson & Johnson's stock JNJ, +0.58% shed 1% in premarket trade Tuesday, after the drug and consumer products giant reported first-quarter profit that beat expectations but sales that missed. Net earnings came to $4.42 billion, or $1.61 a share, compared with $4.46 billion, or $1.59 a share, in the same period a year ago
Johnson & Johnson (JNJ) Tops Q1 EPS by 6c; Guides Slightly Higher
Apr 18, 2017 | Street Insider

Johnson & Johnson (NYSE: JNJ) reported Q1 EPS of $1.83, $0.06 better than the analyst estimate of $1.77. Revenue for the quarter came in at $17.8 billion versus the consensus estimate of $18.03 billion.
Why Johnson & Johnson Raised Guidance After Missing Sales Estimates
Apr 18, 2017 | 24/7 Wall Street

Johnson & Johnson (NYSE: JNJ) reported first-quarter 2017 results before markets opened on Tuesday. The health care giant reported adjusted diluted earnings per share (EPS) of $1.83 on revenue of $17.8 billion. In the same period a year ago, it reported EPS of $1.73 on revenue of $17.48 billion. First-quarter results also compare to the consensus estimates for EPS of $1.77 on revenue of $18.03 billion.
Johnson & Johnson Posts Sluggish Sales, Boosts Guidance on Actelion Deal
Apr 18, 2017 | Motley Fool
By Dan Caplinger

The healthcare industry is in constant flux, but Johnson & Johnson (NYSE:JNJ) aims to be a blue-chip stalwart for investors in the space to get wide-ranging exposure throughout the sector. With reform efforts ongoing and criticism of high-priced drugs from pharmaceutical manufacturers, J&J has had to navigate a difficult industry environment lately, but coming into Tuesday's first-quarter financial report, investors in Johnson & Johnson wanted to see that the healthcare giant could still produce growth.
Johnson & Johnson (NYSE:JNJ) Tumbles -1.03% in Pre-Session Trading
Apr 18, 2017 | Benchmark Monitor

Johnson & Johnson (NYSE:JNJ) announced sales of $17.8 billion for the first quarter of 2017, an increase of 1.6% as compared to the first quarter of 2016. Operational sales results increased 2.0% and the negative impact of currency was 0.4%. Domestic sales increased 0.6%. International sales increased 2.8%, reflecting operational growth of 3.6% and a negative currency impact of 0.8%.
Johnson & Johnson (JNJ) Receives Consensus Rating of “Hold” from Analysts
Apr 18, 2017 | Cerbat Gem
By Amy Steele

Johnson & Johnson (NYSE:JNJ) has been assigned an average recommendation of “Hold” from the nineteen analysts that are currently covering the firm. Two analysts have rated the stock with a sell recommendation, eleven have given a hold recommendation and six have given a buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $122.75.
Johnson & Johnson: Help Me Actelion, You’re My Only Hope
Apr 18, 2017 | Barron's
By Ben Levison

Shares of Johnson & Johnson (JNJ) are on pace for their biggest drop since March 2009 after the health-care giant reported disappointing earnings.
Stocks drop as Goldman, Johnson & Johnson earnings disappoint
Apr 18, 2017 | MarketWatch

Wall Street opened lower on Tuesday, as a spate of weak earnings compounded concerns over this weekend’s French election and U.S.-North Korea tensions, helping to keep a lid on stocks.
Pharma bellwether J&J not worried about drug pricing for specialty meds
Apr 18, 2017 | BioPharma Dive
By Ned Pagliarulo

As the first pharma company to report earnings each quarter, J&J is usually looked to as a indicator of macro-level trends affecting the industry as a whole.
Johnson & Johnson Pummeled After Mixed Q1 Report
Apr 18, 2017 | Benzinga
By Joel Elconin

Johnson & Johnson JNJ 3.5%shares are trading lower by $4.50 (3.4 percent) at $121.22 in Tuesday's session.
J&J’s Actelion acquisition expected to close this quarter
Apr 18, 2017 | Drug Store News
By Brian Berk

Johnson & Johnson confirmed Tuesday during its 2017 fiscal first-quarter earnings report that it expects its $30 billion acquisition of Actelion to close this quarter.
Valuation Concerns at J&J
Apr 18, 2017 | Morningstar

Johnson & Johnson reported first-quarter results largely in line with our expectations, and we don’t expect any major changes to our $108 fair value estimate. We continue to view the stock as slightly overvalued as the growth prospects for the company’s divisions don’t appear strong enough to support the current market price.
Stocks fall as Goldman Sachs and Johnson & Johnson drag Dow lower
Apr 18, 2017 | CNBC
By Fred Imbert

U.S. equities fell on Tuesday after Goldman Sachs shocked Wall Street by missing estimates. Investors also remained vigilant amid U.S.-North Korea tensions and the nearing of the French presidential election.
JOHNSON & JOHNSON (JNJ) REACHES $121.42 AFTER 4.00% DOWN MOVE, EMPLOYERS HOLDINGS (EIG) SELLERS INCREASED BY 5.87% THEIR SHORTS
Apr 18, 2017 | Wolcott Daily
By Clifton Ray

Employers Holdings Incorporated (NYSE:EIG) had an increase of 5.87% in short interest. EIG’s SI was 228,900 shares in April as released by FINRA. Its up 5.87% from 216,200 shares previously. With 90,200
After Johnson & Johnson Earnings, Buy These Pharma Stocks
Apr 18, 2017 | Zacks
By Ryan McQueeney

Shares of Johnson & Johnson JNJ slid nearly 3.5% in morning trading Tuesday after the pharma giant’s first-quarter earnings results were met with mixed reactions from investors. As the sell-off continues, investors focused on large-cap pharma companies may want to move their money into stronger options this earnings season.
3 Big Stock Charts for Tuesday: Progressive Corp (PGR), Johnson & Johnson (JNJ) and Goldman Sachs Group Inc (GS)
Apr 18, 2017 | Investor Place

And they’re off! Earnings season is hitting a stride this morning with 17 of the S&P 500 companies dropping their quarterly results on the market today. In addition, we’re seeing some volatility in stocks from the never-ending Brexit headlines, but the story of the day will still be earnings when the dust clears.
Johnson & Johnson: No Surprises Here
Apr 19, 2017 | Seeking Alpha
By Stone Fox Capital

JNJ reported disappointing results for Q117. The healthcare products company continues to signal the stock is expensive by making a $30 billion deal instead of repurchasing stock. The stock isn't preferred with the limited organic growth despite a 2.6% dividend yield.
Goldman Sachs, Johnson & Johnson Sink the DJIA Tuesday
Apr 19, 2017 | 24.7 Wall Street
By Paul Ausick

Markets opened lower Tuesday after disappointing quarterly results from some big names. An announced snap election in Britain and the coming French elections also got tossed into the mix. Healthcare and financial stocks performed worst today with the counter-cyclicals performing best.
J&J Posts $17.7B in Revenue, Misses Estimates
Apr 19, 2017 | CFO
By Matthew Heller

Johnson & Johnson reported first-quarter revenue that missed analysts’ estimates amid tepid growth in its pharmaceutical and consumer product sales.
Drug Investors Feel Pain of Price Pressure as Earnings Take Hit
Apr 19, 2017 | Bloomberg
By Drew Armstrong and Tatiana Darie

Drug and health-care stocks were some of the worst performers in the U.S. on Tuesday as investors began to worry that pressure on pharmaceutical prices will once again hurt results.
Dow slumps as Goldman, Johnson & Johnson weigh
Apr 18, 2017 | Yahoo Finance

The relief rally (^DJI, ^GSPC, ^IXIC) is short-lived as earnings swing back into focus, and knock the Dow lower, on a Goldman miss. Catch The Final Round at 4 p.m. with Jen Rogers and Yahoo Finance markets correspondent Nicole Sinclair.
Johnson & Johnson's Weak Pharma Revenue Could Spell Doom for Rest of Sector
Apr 19, 2017 | The Street

Johnson & Johnson ( JNJ) shares closed down about 3% after the company reported first quarter revenue that missed analysts' expectations due to lighter than expected pharmaceutical sales.
Johnson & Johnson Leading The Pharmaceutical Sector Lower
Apr 19, 2017 | RTT News

Pharmaceutical stocks are seeing considerable weakness in late-day trading on Tuesday, resulting in a 1.3 percent drop by the NYSE Arca Pharmaceutical Index. With the decline, the index has fallen to a two-month intraday low.
U.S. stocks closer lower as Goldman, J&J disappoint with their results
Apr 18, 2017 | MarketWatch
By Ryan Vlastelica

U.S. stocks closed lower on Tuesday, pressured after a number of key companies disappointed with their quarterly results, renewing concerns that the market's valuation may not be supported by economic activity. The Dow Jones Industrial Average DJIA, -0.55% fell 113 points, or 0.6%, to 20,524. The S&P 500 SPX, -0.29%lost 6.8 points to 2,342, a drop of 0.3%.
Johnson & Johnson, Goldman sneeze and stocks catch a cold
Apr 19, 2017 | Associated Press
By Marley Jay

U.S. stocks fell Tuesday after weak first-quarter reports from Johnson & Johnson and Goldman Sachs frustrated investors who hope that company earnings are on the rise. Health care companies lost the most.
Will Biotechs Feel Johnson & Johnson’s Pain?
Apr 19, 2017 | Barron's
By Crystal Kim

Johnson & Johnson (JNJ) reported disappointing earnings results on Tuesday due to weaker-than-expected sales in the U.S.

Television Coverage

Squawk Box Clip
Apr 18, 2017 | CNBC

View Clip Here: http://app.criticalmention.com/app/#clip/view/26917318?token=b7f37510-c841-4256-9245-5acace1fef42 (1:32)
Squawk Box Short Clip
Apr 18, 2017 | CNBC

View Clip Here: http://app.criticalmention.com/app/#clip/view/26917351?token=b7f37510-c841-4256-9245-5acace1fef42 (00:20)
Mornings with Maria Bartiromo Clip
Apr 18, 2017 | Fox Business

View Clip Here: http://app.criticalmention.com/app/#clip/view/26917315?token=b7f37510-c841-4256-9245-5acace1fef42 (00:35)
Varney & Company Clip
Apr 18, 2017 | Fox Business

View Clip Here: http://app.criticalmention.com/app/#clip/view/26926214?token=b7f37510-c841-4256-9245-5acace1fef42 (00:45)
Bloomberg Markets: America
Apr 18, 2017 | Bloomberg TV

View Clip Here: http://app.criticalmention.com/app/#clip/view/26926200?token=b7f37510-c841-4256-9245-5acace1fef42

Full Text of Stories Below

Traditional Coverage

(Update-1) Johnson & Johnson Lifts Forecast on Actelion Tie-Up

Apr 18, 2017 | Wall Street Journal

By Joshua Jamerson and Jonathan Rockoff

Johnson & Johnson JNJ -3.19% reported Tuesday that sales were hurt by greater rebating of some key prescription drugs in the U.S. and a slowdown world-wide in purchases of consumer-health products, while raising its forecasts for the year as it nears closing on its largest-ever acquisition.
J&J’s world-wide sales of $17.8 billion were up 1.6% for year but missed Wall Street’s estimates. Especially disappointing to analysts was the performance of the company’s pharmaceuticals business, whose $8.2 billion in quarterly sales rose just 1.4%, hurt by sales falling for the blood-thinner Xarelto and diabetes drug Invokana.
Analysts said the results are likely to concern investors worried that the company’s pharmaceuticals business, its main engine of growth in recent years, was slowing. J&J shares fell 3.1% in morning trading on the report.
The New Brunswick, N.J., company attributed the misses to temporary factors, rather than weakening fundamentals. J&J Chief Financial Officer Dominic Caruso said Xarelto and Invokana sales, for instance, were hurt by the larger rebates offered to health plans in order to secure preferred formulary position versus competitors.
Mr. Caruso offered a rosy picture of the impact of U.S. biosimilar competition on J&J’s top-selling product, rheumatoid-arthritis drug Remicade. He said J&J hasn’t seen “much of an impact” so far from Pfizer ’s biosimilar version, which went on sale late last year. “We expects patients will move slowly to a biosimilar,” he added.
J&J said its consumer health-products business was affected by a world-wide slowdown in the sector, as higher gas prices, delayed tax refunds and retailers reducing inventory levels caused sales to stay relatively flat at $3.2 billion world-wide in the quarter. Mr. Caruso said he expects retailers to eventually increase inventories.
J&J raised its overall financial forecast for the year to include the expected impact of the $30 billion acquisition of European rare-disease biotech Actelion Ltd. ALIOY 0.06%
J&J expects the deal, its largest ever, to close in the second quarter. To account for the addition, J&J raised its adjusted per-share earnings guidance to a range of $7 to $7.15, up from $6.93 to $7.08. In addition, it now sees annual sales in a range of $75.4 billion to $76.1 billion, up from $74.1 billion to $74.8 billion.
“We’re optimistic for the future,” Mr. Caruso said.

Over all in the quarter, Johnson & Johnson posted a profit of $4.42 billion, down from $4.46 billion a year earlier. On a per-share basis, profit rose to $1.61 from $1.59, helped by a lower average outstanding share count. Excluding certain items, earnings came in at $1.83 a share; analysts expected $1.77 on that basis.

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Wall Street lower as Goldman Sachs and J&J results disappoint

Apr 18, 2017 | BBC News

US stocks opened lower after results from Goldman Sachs and Johnson & Johnson fell short of expectations.
Goldman Sachs reported a sharp increase in first-quarter profits, but markets had been expecting more and shares in the bank fell 3.4% in early trade.
Johnson & Johnson also weighed on the Dow Jones, dropping 2.9% after its revenues were lower than expected.
The company reported first-quarter sales of $17.77bn, but this was below analysts' forecasts of about $18bn.
Goldman Sachs and Johnson & Johnson were the two biggest fallers on the Dow Jones, and the Dow was down 49.51 points, or 0.2%, at 20,587.41.
The S&P 500 index dipped 1.60 points to 2,347.41, while the tech-heavy Nasdaq index edged down 1.22 points to 5,855.57.

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(UPDATE-3) J&J's Weak First-Quarter Sales Show Why It Made a Megadeal

Apr 18, 2017 | Bloomberg

By Jared S. Hopkins

Johnson & Johnson’s disappointing first-quarter sales highlighted why the world’s largest health-care company made its biggest-ever deal earlier this year.
Three key drugs fell short of analysts’ estimates in the first quarter. And while the blockbuster arthritis treatment Remicade did avoid a major fallout, sales still dropped 6 percent from a year earlier during the first full quarter in which the treatment faced competition a Pfizer Inc. copycat version of a drug known as a biosimilar. J&J’s stock fell as much as 3.5 percent, the biggest drop in more than a year.
One quarter is still early to assess how big an impact the Remicade copycat will have on J&J’s biggest drug in the coming years, but analysts anticipate it will make a major dent in 2019 and 2020. With other medicines slowing down, J&J made a bold bet in January with the $30 billion purchase of Swiss drugmaker Actelion, a leader in treatments for a rare type of high blood pressure that fulfills its goal of gaining a new drug category.
J&J shares were down 3.3 percent to $121.63 at 10:35 a.m. in New York Tuesday. They had gained 9.1 percent this year through Monday’s close.
While biosimilars have long been approved in Europe, Pfizer’s Inflectra was only the second such copycat in the U.S. when it was introduced last November. Remicade’s first-quarter sales, while dropping, still did better than the 8.7 percent slump analysts predicted on average.
Chief Financial Officer Dominic Caruso said J&J anticipated that Remicade would hold its ground against the competition from Inflectra. A biosimilar must go through extra steps before being swapped for its branded version in the U.S., and there’s no interchangeability guidelines yet from the health regulator.
“We did not anticipate we would see much of an impact, and we didn’t,” he said in an interview. “It’ll take time for physicians to get comfortable prescribing a biosimilar to new patients."
Sales of blood thinner Xarelto, diabetes medicine Invokana and cancer drug Zytiga -- which are among J&J’s 10 top-selling treatments -- disappointed last quarter. Invokana was hurt by price pressure, Caruso said.
Raising Forecast
J&J also increased its annual sales forecast Tuesday to reflect the Actelion purchase on Tuesday, to $75.4 billion to $76.1 billion. The New Brunswick, New Jersey-based company also raised its earnings outlook to $7 to $7.15 per share, excluding some items. Analysts anticipated $7.05.
In the first quarter, earnings of $1.83 a share, excluding some items, beat the average estimate of $1.77.
The company continues to explore the possibility of selling or finding a partner for its diabetes-care business, CFO Caruso said, adding there’s no timetable for a potential deal. The $2 billion business drew interest from private equity firms, people familiar with the matter said in March.
Drugmakers are under intense pressure to reduce prices amid an outcry from members of Congress and U.S. customers. President Donald Trump has said drug prices need to come down, and in January he accused the industry of “getting away with murder.” In February, the company released its first-ever "transparency report" showing that its U.S. prices rose 3.5 percent in 2016 after discounts.

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(UPDATE-2) Johnson & Johnson says pricing competition squeezing sales

Apr 18, 2017 | Associated Press

By Linda Johnson

Increased pressure to cut medicine prices and an industry-wide slowdown in consumer health product sales is hurting health care giant Johnson & Johnson.
Those factors, along with a bigger tax bill than a year ago, trimmed J&J's first-quarter profit slightly, but it still gave a rosier financial forecast for the year.
Revenue was crimped by slower growth in many consumer health product categories and by payers demanding bigger rebates off the prices of certain prescription drugs, Chief Financial Officer Dominic Caruso said in an interview. Caruso said drugs with significant competition, particularly cardiovascular, diabetes and other primary care drugs, were particularly hurt by the pricing pressure.
"The diabetes market is very price sensitive, and (net) prices have been declining for some time," Caruso noted.
That's why J&J has been exploring the sale of its diabetes care businesses, which make test strips and insulin pumps, but will continue selling lucrative diabetes pill Invokana.
The world's biggest maker of health care products cited its pending $30 billion purchase of biopharmaceutical company Actelion for the raised forecast. It also benefited from several smaller acquisitions and from the restructuring of its medical device segment, which started in early 2016.
The New Brunswick, New Jersey-based company on Tuesday reported net income of $4.42 billion, or $1.61 per share, down from $4.46 billion, or $1.59 per share, a year earlier.
Earnings, adjusted for one-time costs, came to $1.83 per share, six cents above Wall Street expectations.
Revenue totaled $17.77 billion, which missed Street forecasts for $18.01 billion.
In early trading, J&J shares dropped $3.71, or 3 percent, to $122.01.
Sales in J&J's prescription drug business rose 0.8 percent to $8.3 billion.
But top seller Remicade, an injected biologic drug for Crohn's disease, rheumatoid arthritis and other immune disorders, saw sales decrease 6 percent to $1.7 billion.
Near copy, or "biosimilar," versions of Remicade have cut into its sales in Europe, where they've been available for much longer than in the U.S.
Caruso said the launch late last year of Pfizer Inc.'s Inflectra, a biosimilar of Remicade, has had little impact on sales in the U.S. Doctors there are hesitant to prescribe biosimilars, which are relatively new to the U.S. market, for patients doing well on Remicade.
The Tylenol maker's consumer product sales rose 1 percent to $3.3 billion, while sales of medical devices and diagnostic equipment increased 3 percent to $6.3 billion.
"The company performed mediocrely in two key areas — pharmaceuticals and consumer products. It managed expenses well, but to continue to increase profits, it has to generate better sales increases," Erik Gordon, a professor and pharmaceuticals analyst at University of Michigan's Ross School of Business, wrote in an email.
J&J reported spending in the quarter rose only a percent or two for manufacturing, marketing, administration and research and development.
"We believe J&J has a solid new drug pipeline, which, along with the Actelion acquisition, should support long-term growth," Edward Jones analyst Ashtyn Evans, who has a "Buy" recommendation on J&J, wrote to investors. But she called the quarterly results "mixed," with "disappointing" overall growth.
Johnson & Johnson said it now expects full-year earnings in the range of $7 to $7.15 per share, up from its January forecast of $6.93 to $7.08 per share. Analysts had been expecting $7.07 per share, on average. J&J also increased its revenue forecast to a range of $75.4 billion to $76.1 billion, up from $74.1 billion to $74.8 billion.
The company said it raised the forecast due to the estimated impact of sales from its planned acquisition of Swiss drug maker Actelion, which is expected to close this quarter.
"They're growing very, very rapidly," Caruso said, on sales of Tracleer and other drugs for dangerously high blood pressure in the lungs, and Actelion has experimental medicines for multiple sclerosis and infections in late patient testing.

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Wall Street falls as Goldman, J&J results disappoint

Apr 18, 2017 | Reuters

By Yashaswini Swamynathan

Disappointing quarterly results from corporate heavyweights Goldman Sachs and Johnson & Johnson dragged down major Wall Street indexes on Tuesday.
The S&P 500 healthcare sector. SPXHC tumbled 0.83 percent, as Johnson & Johnson (JNJ.N) fell 2.6 percent after the company reported quarterly revenue that missed analysts' expectations.
The financial sector. SPSY was pressured by a 3.5 percent decline in Goldman Sachs (GS.N), which reported a lower-than-expected quarterly profit due to weak trading revenue.
Goldman influenced other major U.S. banks, including Morgan Stanley (MS.N) and Wells Fargo (WFC.N), which traded lower.
Bank of America (BAC.N) pared most of its premarket gains and was up 0.5 percent even after reporting a quarterly profit that beat expectations.
"The key for the market is still earnings, economic growth etc, and politics is merely a daily side show," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, Illinois.
Following a strong post-election rally, especially in the banking sector, investors are now looking at quarterly earnings to help justify lofty valuations in the market.
At 9:41 a.m. ET (1341 GMT), the Dow Jones Industrial Average .DJI was down 66.05 points, or 0.32 percent, at 20,570.87, the S&P 500 .SPX was down 4.4 points, or 0.19 percent, at 2,344.61 and the Nasdaq Composite .IXIC was down 8.21 points, or 0.14 percent, at 5,848.58.
Adding to the downbeat sentiment was a warning from U.S. Treasury Secretary Steven Mnuchin that U.S. tax reforms could be delayed following setbacks in negotiations with Congress over healthcare.
Safe-havens continued to be in favor ahead of crucial presidential elections in France, rising tensions between the United States and North Korea and the possibility of snap elections in Britain.
Netflix (NFLX.O), the first of the FANG stocks to report, was down 2 percent at $144.37 after the video streaming service provider reported weaker-than-expected subscriber numbers in the first quarter, but forecast strong growth in the current quarter.
One bright spot was Dow component UnitedHealth (UNH.N) whose shares rose 1.3 percent to $169.25 after the health insurer reported better-than-expected quarterly results and raised its profit and revenue forecasts for the year.
Declining issues outnumbered advancers on the NYSE by 1,776 to 821. On the Nasdaq, 1,602 issues fell and 693 advanced.
The S&P 500 index showed nine 52-week highs and two lows, while the Nasdaq recorded 15 highs and 16 lows.

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Wall Street falls as Goldman, J&J weigh

Apr 18, 2017 | Reuters

By Chuck Mikolajczak

U.S. stocks declined on Tuesday, weighed down by a drop in Goldman Sachs and Johnson & Johnson in the wake of their quarterly results, while geopolitical tensions continued to fuel investor caution.
Goldman Sachs lost 4.7 percent to $215.58 after hitting its lowest level since Nov. 29 following earnings that missed expectations as trading revenue dropped.
Goldman shares were on track for their biggest daily percentage drop since June 24, a day after Britain voted to leave the European Union.
Johnson & Johnson (JNJ.N) slumped 3.3 percent and was on pace for its worst day in over eight years after the company's quarterly revenue fell short of analysts' expectations.
"Those tend to be companies who manage earnings a little better, the fact they have missed perhaps isn’t a very good indication," said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.
"There is some nervousness out there about the economy, geopolitical issues and general unpredictability as well."
Healthcare .SPXHC, down 1.0 percent, and financials, off 0.6 percent, were the two worst-performing of the 11 major S&P sectors.
Cardinal Health (CAH.N), down 11.4 percent, also weighed on healthcare after a disappointing profit forecast overshadowed a deal to buy medical supplies businesses from Medtronic (MDT) for $6.1 billion.
Although Bank of America (BAC.N) reported a better-than-expected profit, its shares reversed course to trade slightly lower, falling in line with the broader market.
A rough start to the earnings season could add to investor concerns about market valuations, after a strong post-election rally largely based on expectations of pro-growth policies from President Donald Trump's administration drove major indexes to record highs.
The Dow Jones Industrial Average .DJI fell 109.25 points, or 0.53 percent, to 20,527.67, the S&P 500 .SPX lost 6.25 points, or 0.27 percent, to 2,342.76 and the Nasdaq Composite .IXIC dropped 10.11 points, or 0.17 percent, to 5,846.68.
Safe-havens continued to be in favor, with gold and U.S. Treasury prices climbing ahead of crucial presidential elections in France, rising tensions between the United States and North Korea and the early calling of elections in Britain.
Netflix (NFLX.O), was down 2.6 percent at $143.50 after the video-streaming services provider reported weaker-than-expected subscriber numbers in the first quarter.
Despite the high profile earnings misses, first quarter results have been promising overall. According to Thomson Reuters data through Tuesday morning, of the 45 companies in the S&P 500 that have reported results, 76 percent have topped expectations.
Declining issues outnumbered advancing ones on the NYSE by a 1.28-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favored decliners.
The S&P 500 posted 16 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 34 new highs and 50 new lows.

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(UPDATE-3) J&J first quarter revenue misses estimates; new forecast includes Actelion

Apr 18, 2017 | Reuters

By Natalie Grover and Bill Berkrot

Johnson & Johnson on Tuesday reported disappointing pharmaceutical and consumer product sales as revenue missed analyst estimates, sending its shares sharply lower.
However, cost controls and lower taxes helped the healthcare conglomerate beat Wall Street profit forecasts.
J&J shares, part of the Dow Jones Industrial Average, fell 3.6 percent to $121.11 in the biggest one-day percentage decline in more than eight years as the company said it expected a slower growth rate for pharmaceuticals this year.
Overall sales of $17.77 billion in the quarter fell short of analysts' average estimate of $18.04 billion, according to Thomson Reuters I/B/E/S.
The company, which is on track to close its $30-billion acquisition of Actelion in the current quarter, issued a new full-year forecast to include Europe's largest biotech.
With Actelion, J&J expects 2017 sales of $75.4 billion to $76.1 billion and adjusted earnings of $7.00 to $7.15 per share. It forecast Actelion will contribute 35-40 cents to earnings per share in 2018.
"The expected benefit from the Actelion acquisition this year came in lower than our estimates," said Edward Jones analyst Ashtyn Evans. "Additionally, the company's total growth came in lower than we expected, which is disappointing."
Without Actelion, J&J maintained its prior forecast for sales of $74.1 billion to $74.8 billion and adjusted earnings of $6.93 to $7.08 per share.
"We remain on track for achieving our full-year guidance," Chief Financial Officer Dominic Caruso said on a conference call.
J&J is the first major pharmaceutical company to report quarterly results since Republican attempts to overhaul the U.S. healthcare system failed. While forecasts do not include expectations of tax reform, Caruso expressed confidence that Washington will come through with a lower U.S. corporate tax rate at some point.
Pharmaceutical sales rose just 0.8 percent to $8.25 billion, constrained by competition and pricing pressure, which hurt the diabetes drug Invokana and Xarelto blood thinner.
Newer blood cancer drugs Darzalex and Imbruvica demonstrated very strong growth, while prostate cancer drug Zytiga struggled with U.S. sales off 14.3 percent.
Consumer products grew 1 percent to $3.23 billion, held back by a slowdown at retailers, inventory destocking and economic issues in Latin America.
J&J said it expects business to accelerate over the rest of the year, helped by the introduction of new products.
"You always worry that these things don't bounce back as quickly as you would like," said Guggenheim Securities analyst Tony Butler, adding that J&J has become dependent on acquisitions for growth.
Medical devices grew 3 percent to $6.29 billion, about in line with expectations, including sales from its purchase of Abbott Medical Optics.
Company said it was continuing to evaluate its options for certain diabetes businesses, including possible partnerships or divestitures. That does not include its diabetes drugs.
Excluding items, J&J earned $1.83 per share, beating Wall Street expectations by 6 cents.
Net earnings in the first quarter were $4.42 billion, or $1.61 per share, compared with $4.46 billion, or $1.59 per share, in the year-earlier period.

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BRIEF-Johnson & Johnson Q1 earnings per share $1.61

Apr 18, 2017 | Reuters

Johnson & Johnson
* Johnson & Johnson reports 2017 first-quarter results:
* Q1 earnings per share $1.61
* Q1 sales $17.8 billion versus I/B/E/S view $18.02 billion
* Q1 earnings per share view $1.76 -- Thomson Reuters I/B/E/S
* Sees FY 2017 adjusted earnings per share $7.00 to $7.15
* Q1 adjusted non-GAAP earnings per share $1.83 excluding items
* Sees FY 2017 sales $75.4 billion to $76.1 billion
* J&J says acquisition of Actelion remains on track to close in Q2
* J&J says worldwide consumer sales of $3.2 billion for Q1 2017 represented an increase of 1.0% versus prior year
* J&J says excluding items, qtrly worldwide sales increased 1.2%, domestic sales decreased 0.7% and international sales increased 3.4%

* J&J says worldwide pharmaceutical sales of $8.2 billion for Q1 2017 represented an increase of 0.8% versus prior year

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Johnson & Johnson posts mixed quarterly results

Apr 18, 2017 | Financial Times

By Adam Samson

Johnson & Johnson on Tuesday said it logged a slimmer than expected rise in quarterly sales, but posted profits that topped Wall Street expectations.
The world’s biggest healthcare company said its revenues climbed 1.6 per cent year on year in the first three months of 2017 to $17.77bn, missing analyst estimates of $18bn.
J&J said its consumer sales ticked up by 1 per cent to $3.2bn, as strong growth in its domestic business offset a fall in international sales. Meanwhile, pharmaceutical revenues rose 0.8 per cent to $8.2bn, helped by a steep rise in its international division.
The New Jersey-based maker of Tylenol and Band-Aids said its net profits fell to $4.42bn from $4.46bn. Adjusted earnings per share, which exclude certain items, of $1.83 topped Wall Street forecasts of $1.77.

J&J’s shares fell 1 per cent in pre-market trading.

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Early movers: UNH, JNJ, BAC, HOG, NFLX, TSLA, CAB, BUFF & more

Apr 18, 2017 | CNBC

By Peter Shacknow

United Health - The health insurer earned an adjusted $2.37 per share for the first quarter, 20 cents a share above estimates. Revenue beat Street forecasts and UnitedHealth raised its full-year outlook, helped by strength in its pharmacy benefit management unit.
Johnson & Johnson – Johnson & Johnson beat estimates by six cents a share, with adjusted first-quarter profit of $1.83 per share. Revenue fell short of estimates. The health care company did raise its full-year forecast, and also said the acquisition of Actelion should be completed this quarter.
Bank of America – The bank earned 41 cents per share for the first quarter, six cents a share above estimates. Revenue beat Street forecasts. Bank of America saw improved results from both loans and from trading.
Cardinal Health – The drug distributor bought a patent portfolio from medical products maker Medtronic in a $6.1 billion deal.
Harley-Davidson – The motorcycle maker earned $1.05 per share for its latest quarter, three cents a share above estimates. Revenue was below forecasts, and profit was down more than 25 percent from a year ago due to a drop in motorcycle shipments.
Netflix – Netflix reported quarterly profit of 40 cents per share, three cents a share above estimates. Revenue matched forecasts, but the big focus for investors is subscriber guidance and the conflicting views surrounding it. Some are focusing on a slowdown in both U.S. and international subscriber additions, others are focusing on an upbeat forecast for those numbers later in the year.
United Continental – United beat estimates by three cents a share, with adjusted quarterly profit of 41 cents per share. The airline's revenue scored a slight beat. The report covered the time period before the recent incident in which a passenger was dragged off one of United's flights, but much of the commentary focused on that incident, and will do so again this morning when United holds a conference call with analysts and reporters.
Tesla – A hazardous chemical spill occurred at Tesla's Gigafactory battery facility in Nevada, but there were no serious injuries.
Post Holdings – The cereal maker will buy British cereal brand Weetabix from China's Bright Food Group for nearly $1.8 billion. There had been reports Monday afternoon during the trading day that Post was close to striking the deal.
Fidelity & Guaranty – The company terminated its agreement to be taken over by China's Anbang Insurance. Reuters had reported Monday morning that the deal would be canceled because of Anbang's failure to win the necessary regulatory approval to take over the US-based life insurer.
IRobot – IRobot has sued rival vacuum cleaner makers Hoover and Stanley Black & Decker, accusing them of patent infringement. IRobot, the maker of the Roomba robotic vacuum, said its rivals are using several of its patents for robotic vacuums.
Cabela's – Cabela's will sell its banking assets to Synovus Financial, clearing the way for the retailer of sporting goods and outdoor products to be bought by Bass Pro Shops. Cabela's had planned to sell both its credit card portfolio and its banking assets to Capital One Financial, but the plan was opposed by regulators. Capital One will still go ahead with its purchase of the credit card portfolio.
Rambus – The chipmaker has expanded a memory chip collaboration with Microsoft, involving the optimization of memory chip performance at cryogenic temperatures.
Barracuda Networks – Barracuda reported quarterly profit of 19 cents per share, beating estimates by four cents a share. Revenue also topped estimates, however the cybersecurity company's shares were pressured after it did not issue a current-quarter forecast.
Cummins – Cummins was downgraded to "neutral" from "overweight" at Piper Jaffray, which cites the potential negative impact on the engine maker of Tesla's plan to introduce an electric truck later this year.
Match Group – Jefferies initiated coverage on the dating website's stock with a "buy" rating, as Match's Tinder operation accelerates its monetization efforts.
Blue Buffalo – The pet food company was raised to "Top Pick" at Citi, which also added it to its U.S. Focus List. Citi said a recent sell-off in the shares offers the opportunity to own "the best U.S. food growth story" at an attractive valuation.

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Johnson & Johnson Reports Mixed Results

Apr 18, 2017 | Fox Business

Dow component Johnson & Johnson reported an adjusted 1Q profit of $1.83 per share, topping the estimate for $1.77. Revenue for the company came in at $17.8 billion, also beating the estimate for $18.02 billion.

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Johnson & Johnson Earnings Top, But Drug Sales Are A Drag

Apr 18, 2017 | Investor's Business Daily

By Allison Gatlin

Johnson & Johnson (JNJ) reported first-quarter earnings that were slightly better-than-expected, but revenue was a little light on weaker pharmaceutical sales. Shares of the diversified medical giant and Dow Jones industrial average component fell slightly in the premarket.
Earnings per share rose 5% to $1.83, beating views by six cents. Revenue climbed 1.7% to $17.77 billion, below views for $18.04 billion. Drug sales advanced just 0.8%
Including the estimated impact of its Actelion purchase for the first time, Johnson & Johnson now sees full-year EPS of $7-$7.15 on revenue of $75.4 billion to $76.1 billion. J&J had projected it will reach $74.1 billion to $74.8 billion in 2017 sales, up 4%-5%, with adjusted earnings expected to top $7 a share.
IBD'S TAKE: Johnson & Johnson stock has an IBD Composite Rating of 70, meaning it outperforms all but 30% of stocks in terms of key growth metrics. Head to IBD Stock Checkup for a list of top leaders.
J&J shares fell 0.5% to 125.13 before the opening bell on the stock market today. Shares recently hit a 126.17 buy point out of a consolidation period that began in July. The stock lifted 2.2% from that point, but has since dropped below that level.
RBC analyst Glenn Novarro recently listed Johnson as a stock to own heading into earnings.
Johnson & Johnson is one of two stocks in the Medical-Diversified industry group alongside Abbott Laboratories (ABT).
Johnson & Johnson is one of four Dow Jones industrial average stocks to report Tuesday, with UnitedHealth (UNH) and Goldman Sachs (GS) before the opening bell and IBM (IBM) later today.

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Johnson & Johnson Sees Little Impact In Key Area Despite Pfizer Competition

Apr 18, 2017 | The Street

By Armie Margaret Lee

In the first quarter of 2017, Johnson & Johnson (JNJ) saw "very little impact" from biosimilar competition to Remicade in the U.S., said chief financial officer Dominic Caruso on an earnings call Tuesday.
Remicade is a treatment for arthritis, ulcerative colitis and Crohn's Disease and is a key component of Johnson & Johnson's immunology franchise, which also includes Stelara and Simponi.
Previously the company has said it expects a 10% to 15% market share erosion for Remicade, Tony Butler, an analyst with Guggenheim Securities, noted in an interview on Monday.
Remicade is a treatment for arthritis, ulcerative colitis and Crohn's Disease. Pfizer (PFE) launched Inflector, a biosimilar of Remicade, in November.
"Of course, it's early because the product just launched at the end of last year," Caruso said, referring to Inflectra, a Remicade biosimilar launched by Pfizer in November.
He noted that there's no interchangeability, "so we certainly don't expect that physicians will switch patients," adding: "They may start new patients on therapy. But with the long history that we have of Remicade's efficacy and safety, we believe patients will move slowly to switch to a biosimilar."
Remicade sales in the U.S. were $1.18 billion in the first quarter, down 2.4% year-over-year. Worldwide sales totaled $1.67 billion, down 6%.
Among the topics discussed during the conference call was potential tax reform.
Asked by an analyst for his thoughts on the prospects for corporate tax reform and repatriation, Caruso said he was in Washington last week and his takeaway was that "both the House and the Senate are waiting for guidance from the White House on whether they prefer the border adjustment tax or whether they have another vehicle that they would like to implement."
Also during the call, Caruso said Johnson & Johnson continues to evaluate options for its diabetes care business.
Back in January, when it reported fourth-quarter results, Johnson & Johnson said it was looking at potential strategic options for the diabetes care unit, including LifeScan, Animas and Calibra Medical.
On Tuesday, Johnson & Johnson reported first-quarter adjusted earnings per share of $1.83, up 5.8% year-over-year, and revenue of $17.8 billion, up 1.6% compared to the same period a year ago. Analysts polled by FactSet Research Systems had forecast adjusted EPS of $1.72 on revenue of $18.02 billion.
Pharmaceutical sales were $8.2 billion, up 0.8% year-over-year. Consumer sales were $ $3.2 billion, up 1%, and medical devices sales were $6.3 billion, representing a 3% rise from the year-ago period.
Also on Tuesday, Johnson & Johnson said its deal to acquire Swiss biotech Actelion Ltd. remains on pace to close in the second quarter. Johnson & Johnson in January said it will
purchase Actelion for $30 billion and plans to spin out the latter's research and development unit into a separate business.
The company has now included the estimated impact of the Actelion acquisition in its financial guidance.
For full-year 2017, Johnson & Johnson raised its sales guidance to $75.4 billion to $76.1 billion and its adjusted earnings guidance to $7.00 to $7.15 a share. Previously, the company has forecast full-year 2017 sales of $74.1 billion to $74.8 billion and adjusted earnings of $6.93 to $7.08 per share.
Shares of Johnson & Johnson were trading at $121.34 on Tuesday, down 3.5%.
In February, Johnson & Johnson completed its purchase of Abbott Laboratories' (ABT) medical optics business in a $4.325 billion deal first announced in September.

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Johnson & Johnson Stock Falls on Mixed 1Q Results

Apr 18, 2017 | TheStreet

By Tony Owusu

Johnson & Johnson (JNJ) shares were down 0.5% premarket after the consumer brands company reported first quarter revenue that missed analysts' expectations due to lighter than expected pharmaceutical sales.

The company reported first quarter earnings of $1.83 per share on revenue of $17.7 billion vs. Wall Street expectations of earnings of $1.77 per share on revenue of $18.04 billion.

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Is Johnson & Johnson At The Mercy Of The Business Cycle?

Apr 18, 2017 | Seeking Alpha

By Alessandro Pasetti

Summary
JNJ's Q1 figures were released today.
Headline figures were decent.
However, fundamentals mean little these days and growth prospects remain subdued.
Its shares are driven by other factors.
While signs of stress appear evident in the equity markets, with the VIX index hovering around six-month highs and interest rates falling to the 2.2% area, Johnson & Johnson (NYSE: JNJ) reported a mixed trading update today that confirms its stock is hardly a bargain at current prices -- although, the bulls argue, it is not incredibly expensive, either.
Value
Its shares change hands at about $125, which implies a forward price to earnings ratio of 19x, based on reported earnings per share of $6.6 for 2017, as well as an enterprise value to Ebitda ratio of 11.9x.
Based on both metrics versus historic trading levels, JNJ stock is not prohibitively priced and could continue to attract income seekers, even though consensus estimates from analysts imply little upside after a recent rally -- which started when 10-year US Treasuries traded some 30 basis points higher at 2.5% -- from $111 in late January to $129 in mid-March.
Despite its recent, flashy $30 billion deal, Johnson & Johnson is expected to report a slow but steady first quarter, according to Wall Street analysts," Marketwatch wrote before the announcement, adding that, JP Morgan analyst Michael Weinstein said its stock price would "likely be driven by the market's taste for defensive versus offensive investment, growth of the Actelion business and reinvestment of its profits, clinical data results and competition for the company's pharmaceutical portfolio."
This is an obvious take for a defensive stock that continues to defy the law of gravity despite less benign trading conditions.
Trump & yield curves
So, are the analysts right? And are investors overlooking any other risks?
At the end of January Reuters reported "that US President Donald Trump in a meeting (...) with pharmaceutical executives called on them to manufacture more of their drugs in the United States and cut prices, while vowing to speed approval of new medicines and ease regulation."
"We're going to streamline the FDA," Trump said in a statement.
Seeking Alpha reported today that: "ahead of meetings with finance ministers and central bankers in Washington this week, Treasury Secretary Steve Mnuchin is warning a summer tax reform is 'not realistic at this point,' attributing the delay to setbacks in healthcare."
While regulatory risk persists, investors seem to have decided to pay more attention to other trends and factors, including interest rates. I have the impression that JNJ's fundamentals remain solid, but how it is faring operationally will likely be less important than other factors when it comes to determining its fair value.
It is worth mentioning here that falling interest rates have boosted the value of its debt in recent weeks, and I still find it attractive, particularly at the long end of the yield curve. Consider the 3.7% bond maturing in 2046, and its rise since early March when benchmark rates started to fall from 2.6%; despite significant capital appreciation -- JNJ debt has outperformed JNJ equity by several percentage points lately -- the value of JNJ 2046 debt is still 15% below previous highs.
Of course, interest rates are expected to rise in the near future, so there could be risk investing in fixed-income securities, unless certain projections are completely wrong...
... yet nonetheless recent trends have left me unimpressed, suggesting more downside risk not only for JNJ equity, but also for other diversified conglomerates whose shares continue to factor in a significant equity premium.
Bottom Line
Perhaps the most disappointing elements contained in its trading update for the first quarter was represented by sales that were a touch light against consensus estimates, although adjusted earnings per share met consensus figures.
The company is now including the estimated impact of the Actelion transaction in its financial guidance. As such, the company increased its sales guidance for the full-year 2017 to $75.4 billion to $76.1 billion. Additionally, the company increased its adjusted earnings guidance for full-year 2017 to $7.00 - $7.15 per share."
Sales of blockbuster arthritis drug Remicade, a key value-driver, were down 6% to $1.67bn from $1.77bn on a reported basis year-on-year in the first quarter.
JNJ shares rose 1.1% at one point in pre-market to almost $127, but then fell below $125, which might indicate investors are not entirely sure whether capital appreciation will come alongside a nice dividend boost for the year, which remains a distinct possibility based on its conservative payout ratio.
Growth
It was broadly business as usual across its three core divisions, first-quarter figures revealed, although growth remains problematic in some divisions, with its baby care, oral care and wound care units all down in terms of sales year-on-year.
Despite a higher tax rate, earnings per share rose at group level...
... although excluding stock buybacks, reported earnings per share would have come in at $1.57 rather than $1.61.
So, is it now the time to buy, hold or sell the stock?

Frankly, its 1Q update leaves me with no choice but to seek value elsewhere, as I argued last week.

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J&J Q1 top line up 2%; earnings off 1%

Apr 18, 2017 | Seeking Alpha

By Douglas House

Johnson & Johnson (NYSE:JNJ) Q1 results ($M): Total Revenues: 17,766 (+1.6%); Consumer: 3,228 (+1.0%); Pharmaceutical: 8,245 (+0.8%); Medical Devices & Diagnostics: 6,293 (+3.0%).
Key product sales: Remicade: 1,672 (-6.0%); Stelara: 823 (+12.0%); Invega Sustenna/Xeplion/Invega Trinza: 604 (+17.7%); Zytiga: 523 (-6.3%); Xarelto: 513 (-9.5%); Prezista/Prezcobix/Rezolsta: 430 (-4.9%).
Pre-tax earnings: 5,575 (+5.3%); Non-GAAP pre-tax earnings: 6,103 (+5.2%); Net income: 4,422 (-0.8%); Non-GAAP net income: 5,038 (+3.8%); EPS: 1.61 (+1.3%); Non-GAAP EPS: 1.83 (+5.8%).
2017 Guidance: Total Revenues: $75.4B - 76.1B; Non-GAAP EPS: $7.00 - 7.15.

Shares are off a fraction premarket on light volume.

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J&J's 3.4% post-earnings decline leads healthcare lower; UNH a rare gainer

Apr 18, 2017 | Seeking Alpha

By Stephen Alpher

The company beat on the bottom line, but revenues fell short of estimates thanks a slowdown in pharmaceutical sales.
·       Speaking on the earnings call, CFO Dominic Caruso says J&J (JNJ -3.5%) continues to evaluate options for its diabetes unit. He sees pricing pressure and paying pressure for for Xarelto and Invokana, and is happy to see little impact from biosimilar competition on Remicade.
·       Weighing in on results, Cowen bull Joshua Jennings says the growth slowdown makes the Actelion acquisition more timely than previously thought. Source: Bloomberg's Tatiana Darie.
·       Other players: Merck (MCK -5.9%), Bristol-Myers (BMY -0.1%), Gilead (GILD -1.5%), Eli Lilly (LLY -1.1%), AbbVie (ABBV -1.7%).
·       A rare green name in healthcare is UnitedHealth (UNH +1%) after beating on both lines. Speaking on the earnings call, CEO Stephen Hemsley says Q2 results are likely to be inline with that seen in Q1.
·       Other insurers: Aetna (AET -0.8%), Humana (HUM -0.3%), WellCare (WCG -0.4%)
·       Also at work is Cardinal Health's 11.6% plunge after its weak guidance.
·       The Health Care SPDR (XLV -1.4%)
ETFs: XLV, IYH, VHT, HQH, CURE, FXH, FHLC, RXL, THQ, RYH, RXD, SICK, BTEC, HCRF, JHMH, LNGR

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Johnson & Johnson beats by $0.07, misses on revenue

Apr 18, 2017 | Seeking Alpha

Johnson & Johnson (NYSE:JNJ): Q1 EPS of $1.83 beats by $0.07.
Revenue of $17.77B (+1.7% Y/Y) misses by $240M.
Shares +0.15% PM.

Press Release

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Johnson & Johnson (NYSE:JNJ) Posted Underwhelming Sales; Announces a $30 billion deal to Buy Actelion

Apr 18, 2017 | Benchmark Monitor

On Tuesday, Johnson & Johnson (NYSE:JNJ) posted underwhelming sales in the latest quarter, amid soft results in United States, also lifted its forecasts for the year, as it works to close the largest acquisition in the company’s history in an effort to drive growth.
Johnson & Johnson (NYSE:JNJ) has been facing the threat of lower-priced competition emerging for some top-selling prescription drugs. The company said Tuesday its $30 billion deal to buy Actelion Ltd. is on track to close in the second quarter. That deal, announced in January, underscores the hefty price big pharmaceutical companies can face to replenish their drug pipelines as their top sellers lose patent protection.Johnson & Johnson (NYSE:JNJ) shares ticked up 0.58% to $125.72 on Monday.
The acquisition of Actelion, Europe’s biggest biotech firm by sales and market value, is J&J’s largest deal ever. J&J updated its financial forecast for the year to include the expected impact of the acquisition, raising its adjusted per-share earnings guidance to a range of $7 to $7.15, up from $6.93 to $7.08. In addition, it now sees annual sales in a range of $75.4 billion to $76.1 billion, up from $74.1 billion to $74.8 billion.
Technical Stock Analysis
Shares outstanding are recorded as 2710.89 billion and total shares floated are 2709.51 billion. Current ratio which is the relationship between current assets and current liabilities, indicating the liquidity of a business is calculated as 2.50. Company’s distance from 20 day simple moving average is 0.19% and distance from 50-Day simple moving average is 2.78%.
Best time to invest in stock market is when things are on odd side, and it’s not easy how to pick stocks. By reviewing stock prices from the stock market history of the company and examining its analysts ratings can give an investment picture with updated information of stock which helps investors to make investing decision. Stock has got OUTPERFORM rating from 4 analysts of Thomson Reuters, 12 analysts given HOLD rating to the stock and 0 given UNDERPERFORM rating. Analyst’s mean target price for JNJ is $128.56 while analysts mean recommendation is 2.50.
Johnson & Johnson (NYSE:JNJ) yearly performance is 17.26% and net profit margin is 23.00%. Annual EPS Growth of past 5 years is 11.20%. The current share price indicates that stock is -2.54% away from its one year high and is moving 18.04% ahead of its 52-week low.
On 17 April 2017, DDR Corp. (NYSE:DDR) shares moved to $12.80 after starting the day at $12.65. Stock has got OUTPERFORM rating from 3 analysts of Thomson Reuters, 16 analysts given HOLD rating to the stock and 1 given UNDERPERFORM rating. Analyst’s mean target price for DDR is $14.82 while analysts mean recommendation is 2.90.
At the movement Outfront Media Inc. (NYSE:OUT) is under coverage by number of analysts. Buy rating has been given by 2 analysts to the company stock whereas no analyst given UNDERPERFORM rating to stock and 6 analysts given HOLD rating. The consensus recommendation by Thomson Reuters analysts is Outperform and their mean rating for the stock is 2.44 on scale of 1-5. Analysts mean target price for Outfront Media Inc. (NYSE:OUT) is $27.94 while their mean recommendation is 2.30 (1=Buy, 5=sell).
If we look at stock performance in last active day trading, we see that stock has moved ticked up 1.57% to end the day at $25.85. The current share price indicate that stock is -6.05% away from its one year high and is moving 29.98% ahead of its 52-week low.
On 17 April 2017, Cliffs Natural Resources Inc. (NYSE:CLF) shares moved to $6.85 after starting the day at $7.22. Number of analysts are covering this stock and currently stock has got OUTPERFORM rating from 1 analyst of Thomson Reuters, 5 analysts given HOLD rating to the stock and 0 given UNDERPERFORM rating. Analyst’s mean target price for CLF is $8.43 while analysts mean recommendation is 3.10.

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Johnson & Johnson, Harley-Davidson Beat On Earnings, Miss On Sales

Apr 18, 2017 | Value Walk

By Michelle Jones

Johnson & Johnson and Harley-Davidson released their latest quarterly results before opening bell this morning. Johnson & Johnson posted adjusted earnings of $1.83 per share on $17.8 billion in revenue, compared to the consensus estimates of $1.77 per share and $18.02 billion. In the same quarter a year ago, the consumer products company reported $17.48 billion in revenue.
Harley-Davidson posted earnings of $1.05 per share on $1.33 billion in sales, compared to the Wall Street consensus estimates of $1.02 per share and $1.37 billion. In last year’s first quarter, the motorcycle manufacturer reported $1.36 per share in earnings and $1.58 billion in revenue.
Johnson & Johnson’s segment sales miss estimates
Johnson & Johnson’s GAAP earnings per share rose to $1.61 from $1.59 per share in last year’s first quarter. Consumer revenue rose to $3.23 billion from $3.2 billion last year, but it missed the consensus of $3.34 billion. Pharmaceutical revenue rose to $8.25 billion from $8.18 billion, but it also missed the consensus at $8.42 billion. Medical devices revenue rose to $6.29 billion from $6.11 billion last year, but that was a little shy of consensus at $6.27 billion.
Johnson & Johnson boosted its full-year adjusted earnings per share outlook to a range of $7 to $7.15 per share from the previous range of $6.93 to $7.08 per share.
Shares of Johnson & Johnson were little changed in premarket trading this morning as they hovered around $125.72 per share.
Harley-Davidson shares slump in premarket
Harley-Davidson’s motorcycle sales fell 16.5% to $1.1 billion during the first quarter, coming up just barely short of the consensus at $1.11 billion. Retail motorcycle sales fell 4.2% year over year globally, while U.S. retail motorcycle sales fell 5.7% year over year, which the company said was in line with the industry. The company’s U.S. market share in the 601cc-plus segment rose to 51.3% during the first quarter.
Harley-Davidson expects to ship between 80,000 and 85,000 motorcycles during the second quarter, while analysts were looking for the company to ship 91,025 motorcycles. For the full year, the company affirmed its previous shipment outlook of “flat to down modestly.”
Shares of Harley-Davidson slipped by as much as 4.04% to $57 in premarket trading this morning.

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Johnson & Johnson (JNJ) Receives Consensus Rating of “Hold” from Analysts

Apr 18, 2017 | Watch List News

By Hanz Christensen

Johnson & Johnson (NYSE:JNJ) has been assigned a consensus recommendation of “Hold” from the nineteen brokerages that are covering the company. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have issued a buy rating on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $122.75.
Several brokerages have recently issued reports on JNJ. Barclays PLC reiterated an “equal weight” rating and issued a $130.00 price objective (up previously from $125.00) on shares of Johnson & Johnson in a research note on Monday. Jefferies Group LLC reiterated a “hold” rating and issued a $132.00 price objective (up previously from $125.00) on shares of Johnson & Johnson in a research note on Saturday, March 11th. Vetr cut Johnson & Johnson from a “hold” rating to a “sell” rating and set a $119.73 price objective for the company. in a research note on Tuesday, March 7th. Wells Fargo & Co cut Johnson & Johnson from an “outperform” rating to a “market perform” rating and lifted their price objective for the company from $112.28 to $112.80 in a research note on Thursday, January 26th. Finally, Royal Bank of Canada decreased their price objective on Johnson & Johnson from $133.00 to $128.00 and set an “outperform” rating for the company in a research note on Wednesday, January 25th.
In related news, VP Paulus Stoffels sold 22,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 15th. The stock was sold at an average price of $117.29, for a total transaction of $2,580,380.00. Following the completion of the sale, the vice president now owns 127,650 shares in the company, valued at $14,972,068.50. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.11% of the stock is owned by insiders.
Large investors have recently bought and sold shares of the company. Itau Unibanco Holding S.A. purchased a new stake in shares of Johnson & Johnson during the third quarter worth $104,000. Lenox Wealth Advisors Inc. boosted its stake in shares of Johnson & Johnson by 0.7% in the first quarter. Lenox Wealth Advisors Inc. now owns 871 shares of the company’s stock worth $108,000 after buying an additional 6 shares in the last quarter. Thomas J. Herzfeld Advisors Inc. purchased a new stake in shares of Johnson & Johnson during the fourth quarter worth $117,000. Empirical Finance LLC purchased a new stake in shares of Johnson & Johnson during the fourth quarter worth $144,000. Finally, Foundation Resource Management Inc. purchased a new stake in shares of Johnson & Johnson during the first quarter worth $204,000. Hedge funds and other institutional investors own 65.30% of the company’s stock.
Johnson & Johnson (NYSE:JNJ) opened at 125.72 on Tuesday. The company has a 50-day moving average of $125.32 and a 200 day moving average of $118.02. Johnson & Johnson has a one year low of $109.32 and a one year high of $129.00. The firm has a market cap of $341.12 billion, a P/E ratio of 21.20 and a beta of 0.74.
Johnson & Johnson (NYSE:JNJ) last released its earnings results on Tuesday, January 24th. The company reported $1.58 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.02. The company earned $18.10 billion during the quarter, compared to the consensus estimate of $18.28 billion. Johnson & Johnson had a return on equity of 25.61% and a net margin of 22.78%. Johnson & Johnson’s revenue was up 1.7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.44 EPS. Equities research analysts expect that Johnson & Johnson will post $7.05 earnings per share for the current fiscal year.
Johnson & Johnson Company Profile
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being.

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Johnson & Johnson logs Q1 earnings beat, sales miss

Apr 18, 2017 | Mass Device

By Brad Perriello

Johnson & Johnson (NYSE:JNJ) topped Wall Street’s earnings forecast with its 1st-quarter results, but missed the sales expectation by more than a quarter billion dollars.
Still, the New Brunswick, N.J.-based healthcare conglomerate raised its outlook for the rest of the year based on the impact of its pending $30 billion acquisition of Swiss biotech firm Actelion (VTX:ATLN).
J&J posted overall profits of $4.42 billion, or $1.61 per share, on sales of $17.77 billion for the 3 months ended March 31, for flat growth on the bottom line and a 1.6% sales bump compared with Q1 2016. Adjusted to exclude 1-time items, earnings per share were 7¢ ahead of The Street at $1.83 apiece, but sales fell short of the consensus $18.03 billion outlook.
“Johnson & Johnson’s 1st-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year. The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products,” chairman & CEO Alex Gorsky said in prepared remarks.
Johnson & Johnson said it now expects to report adjusted EPS of $7.12 to $7.27 this year, up from prior guidance of $6.93 to $7.08. Full-year sales are now pegged at $76.1 billion to $76.8 billion, compared with $74.1 billion to $74.8 billion previously.
JNJ shares ticked down -0.9% to $124.60 apiece today in pre-market trading.

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Johnson & Johnson Q1 Profit Tops Estimates; Lifts FY17 View

Apr 18, 2017 | RTT News

Drug giant Johnson & Johnson ( JNJ ) Tuesday reported a slight decline in first-quarter net earnings, while earnings per share increased with higher sales. Adjusted earnings topped analysts' estimates, while sales missed their view. Further, the company raised its earnings and sales outlook for fiscal 2017, including the estimated impact of the Actelion transaction.
In pre-market activity, JNJ shares were losing 0.95 percent to $124.53.
For fiscal 2017, the company now expects adjusted earnings guidance of $7.00 to $7.15 per share, compared to previous estimate of $6.93 to $7.08 per share. Sales are now expected to be $75.4 billion to $76.1 billion, compared to previous estimate of $74.1 billion to $74.8 billion.
Drug giant Johnson & Johnson ( JNJ ) Tuesday reported a slight decline in first-quarter net earnings, while earnings per share increased with higher sales. Adjusted earnings topped analysts' estimates, while sales missed their view. Further, the company raised its earnings and sales outlook for fiscal 2017, including the estimated impact of the Actelion transaction.
In pre-market activity, JNJ shares were losing 0.95 percent to $124.53.

For fiscal 2017, the company now expects adjusted earnings guidance of $7.00 to $7.15 per share, compared to previous estimate of $6.93 to $7.08 per share. Sales are now expected to be $75.4 billion to $76.1 billion, compared to previous estimate of $74.1 billion to $74.8 billion.

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Johnson & Johnson Q1 Profit Rises 4%

Apr 18, 2017 | RTT News

Johnson & Johnson (JNJ) released earnings for its first quarter that climbed from last year.
The company said its bottom line rose to $5.04 billion, or $1.83 per share. This was higher than $4.85 billion, or $1.73 per share, in last year's first quarter.
Analysts had expected the company to earn $1.76 per share, according figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company said revenue for the quarter rose 1.7% to $17.77 billion. This was up from $17.48 billion last year.
Johnson & Johnson earnings at a glance:
-Earnings (Q1): $5.04 Bln. vs. $4.85 Bln. last year.
-Earnings Growth (Y-o-Y): 3.9%
-EPS (Q1): $1.83 vs. $1.73 last year.
-EPS Growth (Y-o-Y): 5.8%
-Analysts Estimate: $1.76
-Revenue (Q1): $17.77 Bln vs. $17.48 Bln last year.
-Revenue Change (Y-o-Y): 1.7%
-Guidance:
Full year EPS guidance: $7.00 - $7.15

Full year revenue guidance: $75.4 - $76.1 Bln

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J&J (JNJ) Beats on Q1 Earnings, Sales Miss Again

Apr 18, 2017 | Zacks

Johnson & Johnson (JNJ - Free 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. JNJ also had issues with its consumer segment manufacturing facilities.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential as well as the 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 2.43%. Estimates have risen slightly over the past 7 days.
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 first quarter earnings - the company reported EPS of $1.83 while our consensus called for EPS of $1.77.
Revenues Miss: Revenues were, however, below expectations. Johnson & Johnson posted revenues of $17.8 billion, compared to our consensus estimate of $18.0 billion.
Key Statistics: The Pharmaceutical segment sales grew 0.8% year over year to $8.25 billion, reflecting 1.4% operational growth and a 0.6% negative currency impact.
Stock Price Impact: Shares declined around 1% in pre-market trading.
Check back later for our full write up on this JNJ earnings report later!

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J&J (JNJ) Q1 Earnings Beat Estimates, Pharma Sales Slow Down

Apr 18, 2017 | Zacks

Johnson & Johnson (JNJ - Free Report) reported mixed first-quarter 2017 results. While earnings beat expectations, sales missed the same due to a slowdown in pharmaceutical product sales. The drug and consumer products giant raised its 2017 sales and earnings outlook though only to include the impact of the pending $30 billion acquisition of Swiss biotechnology company Actelion Ltd. (ALIOF - Free Report).
Shares declined 1.4% in pre-market trading.This year so far, J&J’s share price is up 9.8%. This compares favorably with the 6.8% increase witnessed by the Zacks classified Large-Cap Pharma industry.
Earnings Beat
J&J’s first-quarter 2017 earnings came in at $1.83 per share, beating the Zacks Consensus Estimate of $1.77 and increasing 5.8% from the year-ago period.
Including one-time items, J&J reported first-quarter earnings of $1.61 per share, up 1.3% from the year-ago period.
Sales Miss
Sales came in at $17.77 billion, missing the Zacks Consensus Estimate of $18.0 billion by 1.3%. Sales increased 1.6% from the year-ago quarter, reflecting an operational increase of 2% and a negative currency impact of 0.4%.First-quarter sales grew 0.6% in the domestic market to $9.38 billion and 2.8% in international markets to $8.39 billion, reflecting 3.6% operational growth, partially offset by a 0.8% negative currency impact.
Sales in Details
Pharmaceutical segment sales grew 0.8% year over year to $8.25 billion, reflecting 1.4% operational growth and a 0.6% negative currency impact.
Sales in the domestic market declined 1.3% to $4.87 billion, while international sales grew 4.1% to $3.37 billion
New products like Imbruvica (cancer) and Darzalex (multiple myeloma) continued to perform well. Other growth drivers were Stelara, Invega Sustenna and Simponi.
However, sales of Xarelto declined 9.5% in the quarter. Invokana/Invokamet sales declined 12.6%, Concerta declined 9.5% while Zytiga sales fell 6.3%.
Importantly, sales of the blockbuster rheumatoid arthritis drug Remicade, marketed in partnership with Merck & Co., Inc. (MRK - Free Report), declined 6% in the quarter with U.S. sales declining 2.4% and international sales declining 3% due to biosimilar competition. In this regard, we would like to mention that Pfizer Inc. (PFE - Free Report) launched its Inflectra injection, a biosimilar version of Remicade in the U.S. late last November, which did not have any significant impact on Remicade sales in the fourth quarter of 2016. Management is expected to comment on the impact of the biosimilar on first-quarter sales at the conference call.
J&J’s Pharma segment achieved some clinical milestones during the quarter including label expansion for Imbruvica and positive late-stage data for psoriasis candidate guselkumab. Meanwhile, J&J announced the deal to buy Actelion in January this year with the transaction expected to close in the second quarter.
Medical Devices segment sales came in at $6.29 billion, up 3% from the year-ago period. It included an operational increase of 3.4% and negative currency movement of 0.4%.Sales in the domestic market rose 2.2% year over year to $3.09 billion. International market sales inched up 3.8% (operational increase of 4.7%) year over year to $3.2 billion.
Operational growth was driven by endocutters in the Advanced Surgery business; electrophysiology products in the Cardiovascular business and Acuvue contact lenses in the Vision Care business, which made up for a weaker sales performance in the Diabetes Care unit.
The Consumer segment recorded revenues of $3.23 billion in the reported quarter, up 1% year over year (operational increase of 0.8%). Foreign currency movement positively impacted sales in the segment by 0.2%. Sales in the domestic market grew 4.1% from the year-ago period to $1.41 billion.
Slower growth in Listerine oral care, baby care and wound care products was partially offset by growth in over-the-counter products.
Meanwhile, the international segment recorded a decline of 1.3% to $1.81 billion, reflecting an operational decline of 1.6% and a positive currency impact of 0.3%.
2017 Guidance Raised
J&J raised its sales and earnings guidance for 2017 to include the impact of the Actelion deal. J&J expects adjusted earnings per share in the range of $7.00 - $7.15 for 2017 compared with $6.93 to $7.08 expected previously.
The revenue guidance is in the range of $75.4 billion to $76.1 billion compared with $74.1 billion to $74.8 billion expected previously.
The Zacks Consensus Estimate for sales and earnings are pegged at $75.02 billion and $7.03 per share, respectively for 2017.The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our Take
This was the second consecutive sales miss for J&J. While sales in the Medical Device segment are picking up, as expected, the Pharma segment saw softer growth in the quarter. In 2017, growth in J&J’s Pharma segment is expected to be slower as key growth drivers have slowed down due to competition. Quite a few products in its portfolio like Remicade and Concerta are facing generic competition. However, the deal with Actelion, though expensive, will diversify J&J’s revenues to the pulmonary arterial hypertension (PAH) category and bolster its long-term growth.

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Johnson & Johnson Q1 Earnings Mixed, Says Actelion Deal Will Close In Q2

Apr 18, 2017 | Stock News

Johnson & Johnson (NYSE:JNJ) early Tuesday posted mixed first quarter earnings results, but said its guidance remains unchanged as it works to fully integrate a big recent acquisition.
The New Brunswick, NJ-based diversified healthcare giant reported Q1 earnings per share (EPS) of $1.83, which was $0.06 better than the Wall Street consensus estimate of $1.77.
Revenues rose 1.6% from last year to $17.77 billion, however, missing analysts’ view for $18.02 billion.
Worldwide Consumer sales, which include products like Band-Aids and dental floss, rose 1% from last year to $3.2 billion, with domestic sales up 4.1% but international sales down 1.3%.
Worldwide Pharmaceutical sales edged 0.8% from last year to $8.2 billion. Domestic sales of pharma products fell 1.3%, but international sales gained 4.1%.
Finally, Worldwide Medical Devices sales gained 3% to $6.3 billion, with domestic sales up 2.2% and international sales gaining 3.8%.
Looking ahead, JNJ said that its recent acquisition of Actelion should close during the current second quarter. As a result, it expects Q2 EPS of $7.00 to $7.15, while analysts are looking for $7.08. Full-year 2017 revenues are expected to range from $75.4 to $76.1 billion, slightly ahead of Wall Street’s current $75.21 billion view.
The company also commented that it remains on track to hit its previously announced earnings forecast:
“Johnson & Johnson’s first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year.”
Johnson & Johnson shares rose $0.19 (+0.15%) in premarket trading Tuesday. Year-to-date, JNJ had gained 9.84% prior to today’s report, versus a 5.40% rise in the benchmark S&P 500 index during the same period.
JNJ currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 135 stocks in the Medical – Pharmaceuticals category.

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Johnson & Johnson (NYSE:JNJ) Delivers Q1 EPS Beat, Boosts Guidance, Stock Is Up

Apr 18, 2017 | Stock Market Daily

By R Chandrasekaran

Johnson & Johnson (NYSE:JNJ) delivered better than expected earnings for the first quarter though its revenue disappointed investors. However, the company lifted its EPS and the top line outlook for the full year to reflect its Actelion acquisition impact. Following this, the stock is trading up in the pre-market trading on Tuesday.
Johnson & Johnson reported net earnings of $4.4 billion or $1.61 a share for the first quarter. In comparison, the company earned $4.457 billion or $1.59 a share in the year-ago quarter. On an adjusted basis, its earnings would have been $1.83 a share representing a growth of 5.8 percent and came in above the expectations of $1.76 a share.
Its top line advanced 1.6 percent to $17.8 billion and missed the Street estimates of $18.01 billion. Operational sales grew 2.0 percent as negative impact from the currency was 0.4 percent. While domestic sales grew 0.6 percent, global sales increased 2.8 percent reflecting operational uptick of 3.6 percent.
The company’s chairman and CEO, Alex Gorsky, commented, “Johnson & Johnson’s first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year. The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products.”
Moving ahead, the company indicated that it boosted its sales and earnings outlook for the current year. Accordingly, the company expects adjusted earnings of $7.00 – $7.15 a share on revenue of $75.4 – $76.1 billion for the year 2017. Street analysts are looking for an EPS of $7.04 and revenue of $74.65 billion.
Following the results and outlook, the stock is trading up 0.15 percent in pre-market on Tuesday.

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Johnson & Johnson's stock falls after sales miss offset profit beat and raised outlook

Apr 18, 2017 | MarketWatch

By Tomi Kilgore

Johnson & Johnson's stock JNJ, +0.58% shed 1% in premarket trade Tuesday, after the drug and consumer products giant reported first-quarter profit that beat expectations but sales that missed. Net earnings came to $4.42 billion, or $1.61 a share, compared with $4.46 billion, or $1.59 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share were $1.83, above the FactSet consensus of $1.77. Revenue rose to $17.77 billion from $17.48 billion, below the FactSet consensus of $18.02 billion, as a slight beat in medical device revenue was offset by misses in consumer and pharmaceutical sales. The company raised its 2017 adjusted EPS outlook to $7.00 to $7.15 from $6.93 to $7.08, and its revenue guidance to $75.4 billion to $76.1 billion from $74.1 billion to $74.8 billion. The stock has rallied 9.1% year to date through Monday, while the Dow Jones Industrial Average DJIA, +0.90% has gained 4.4%.

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Johnson & Johnson (JNJ) Tops Q1 EPS by 6c; Guides Slightly Higher

Apr 18, 2017 | Street Insider

Johnson & Johnson (NYSE: JNJ) reported Q1 EPS of $1.83, $0.06 better than the analyst estimate of $1.77. Revenue for the quarter came in at $17.8 billion versus the consensus estimate of $18.03 billion.
Johnson & Johnson said the Actelion acquisition remains on track to close in the second quarter.
"Johnson & Johnson's first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year," said Alex Gorsky, Chairman and Chief Executive Officer. "The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products. We look forward to the associates from Actelion joining the Johnson & Johnson Family of Companies."
GUIDANCE:
Johnson & Johnson sees FY2017 EPS of $7.00-$7.15, versus the consensus of $7.05.

For earnings history and earnings-related data on Johnson & Johnson (JNJ) click here.

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Why Johnson & Johnson Raised Guidance After Missing Sales Estimates

Apr 18, 2017 | 24/7 Wall Street

Johnson & Johnson (NYSE: JNJ) reported first-quarter 2017 results before markets opened on Tuesday. The health care giant reported adjusted diluted earnings per share (EPS) of $1.83 on revenue of $17.8 billion. In the same period a year ago, it reported EPS of $1.73 on revenue of $17.48 billion. First-quarter results also compare to the consensus estimates for EPS of $1.77 on revenue of $18.03 billion.
The company is now including the estimated impact of the Actelion acquisition in its financial guidance. As such, Johnson & Johnson increased its sales guidance for the full year 2017 from a prior range of $74.1 billion to $74.8 billion to a new range of $75.4 billion to $76.1 billion. Additionally, the company increased its adjusted earnings guidance for full year from a prior range of $6.93 to $7.08 to a new range of $7.00 to $7.15 per share.
Consensus estimates call for fiscal year 2017 EPS of $7.05 on revenues of $74.73 billion. For the second quarter, analysts are looking for EPS of $1.80 on revenues of $19.05 billion.
CEO Alex Gorsky said:
Johnson & Johnson’s first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year. The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products.
Consumer sales totaled $3.2 billion in the first quarter, an increase of 1% year over year. Pharmaceutical sales totaled $8.2 billion, up 0.8%, and medical device sales rose 3% to $6.3 billion.
Shares closed at $125.72 on Monday and traded down about 2.5% early at $122.56. The stock’s 52-week range is $109.32 to $129.00. The 12-month consensus analyst price target was $129.69 before the results were announced

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Johnson & Johnson Posts Sluggish Sales, Boosts Guidance on Actelion Deal

Apr 18, 2017 | Motley Fool

By Dan Caplinger

The healthcare industry is in constant flux, but Johnson & Johnson (NYSE:JNJ) aims to be a blue-chip stalwart for investors in the space to get wide-ranging exposure throughout the sector. With reform efforts ongoing and criticism of high-priced drugs from pharmaceutical manufacturers, J&J has had to navigate a difficult industry environment lately, but coming into Tuesday's first-quarter financial report, investors in Johnson & Johnson wanted to see that the healthcare giant could still produce growth.
J&J's recent decision to acquire Actelion led the company to boost its guidance for the full year, but the healthcare conglomerate's results weren't everything those following the stock had hoped to see. Let's look more closely at Johnson & Johnson to see how it did and what's ahead for the company going forward.
J&J is still struggling to boost its top line
Johnson & Johnson's first-quarter financial results again showed some of the challenges the company has faced lately. Revenue was up just 1.6% to $17.77 billion, which was about half of the growth rate investors had wanted to see. GAAP earnings actually dropped slightly from year-ago levels, due largely to a substantial boost in income tax expense. But adjusted earnings of $1.83 per share were up almost 6% from the year-earlier quarter and topped the consensus forecast for $1.77 per share.
Once again, there was a change this quarter in the leading segment within Johnson & Johnson's corporate structure. The medical devices business performed the best from a top-line perspective, seeing sales climb 3%. As we've seen in past quarters, the unit benefited from its Acuvue contact lens products, as well as electrophysiology devices for cardiovascular applications and endocutters in J&J's advanced surgery business. The acquisitions of Abbott Medical Optics and privately held specialists Megadyne Medical Products and Torax Medical helped boost the unit's prospects for the quarter.
Consumer sales lost some momentum, seeing growth slow to just 1%. Without acquisitions, the unit would have seen its top line fall, and U.S. sales dramatically outperformed J&J's international revenue. Tylenol and other over-the-counter products did fairly well, but oral care, baby care, and wound care products didn't pull their weight during the quarter.
Most importantly, pharmaceutical sales lagged the rest of the company's performance, with sales gains of just 0.8%. Drug sales internationally grew while domestic revenue dropped, and J&J pointed to the success of multiple myeloma treatment Darzalex and blood-cancer drug Imbruvica as key contributors to its overall performance.
Can Johnson & Johnson grow faster?
CEO Alex Gorsky was measured in his statements about the quarter. "Johnson & Johnson's first-quarter results are in line with our expectations," Gorsky said, "and we are confident we will achieve the full-year financial guidance we established at the beginning of the year." The CEO also pointed to the Actelion acquisition as a key driver of future growth.
In response to its successful tender offer to acquire a substantial supermajority stake in Actelion, J&J changed its 2017 outlook to include estimated impacts from the acquisition. Sales projections rose roughly $1.3 billion, with a new range of $75.4 billion to $76.1 billion. Johnson & Johnson anticipates about $0.07 per share in positive impact on earnings from Actelion, providing a new range of $7 to $7.15 per share for the bottom line on an adjusted basis.
Yet investors are still trying to parse together exactly what the $30 billion buyout will mean for Johnson & Johnson. In Gorsky's words, the deal should help J&J "expand our portfolio with leading, differentiated in-market medicines and promising late-stage products." However, the vagueness of that statement shows just how difficult it is to predict how even a major high-profile acquisition will necessarily lead to better results going forward.
Johnson & Johnson investors didn't seem entirely satisfied with the performance, and the stock fell more than 1% in pre-market trading following the announcement. What's becoming clearer is that in order to foster the kind of growth investors want to see, J&J will have to take aggressive steps to bolster organic efforts as well as tapping the M&A market as appropriate. Otherwise, Johnson & Johnson might start falling behind some of its nimbler rivals in finding the opportunities that will drive growth in the years to come.

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Johnson & Johnson (NYSE:JNJ) Tumbles -1.03% in Pre-Session Trading

Apr 18, 2017 | Benchmark Monitor

Johnson & Johnson (NYSE:JNJ) announced sales of $17.8 billion for the first quarter of 2017, an increase of 1.6% as compared to the first quarter of 2016. Operational sales results increased 2.0% and the negative impact of currency was 0.4%. Domestic sales increased 0.6%. International sales increased 2.8%, reflecting operational growth of 3.6% and a negative currency impact of 0.8%.
Johnson & Johnson (NYSE:JNJ) shares gained 0.58% to $125.72 on Monday.
Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.2%, domestic sales decreased 0.7% and international sales increased 3.4%.*
Technical Stock Analysis
Shares outstanding are recorded as 2710.89 M and total shares floated are 2709.51 M. Current ratio which is the relationship between current assets and current liabilities, indicating the liquidity of a business is calculated as 2.50. Company’s distance from 20 day simple moving average is 0.19% and distance from 50-Day simple moving average is 2.78%.
Best time to invest in stock market is when things are on odd side, and it’s not easy how to pick stocks. By reviewing stock prices from the stock market history of the company and examining its analysts ratings can give an investment picture with updated information of stock which helps investors to make investing decision. Stock has got OUTPERFORM rating from 4 analysts of Thomson Reuters, 12 analysts given HOLD rating to the stock and 0 given UNDERPERFORM rating. Analyst’s mean target price for JNJ is $128.56 while analysts mean recommendation is 2.50.
Johnson & Johnson (NYSE:JNJ) yearly performance is 17.26% and net profit margin is 23.00%. Annual EPS Growth of past 5 years is 11.20%. The current share price indicates that stock is -2.54% away from its one year high and is moving 18.04% ahead of its 52-week low.
Celanese Corporation (NYSE:CE) reported first quarter 2017 GAAP diluted earnings per share of $1.30 and adjusted earnings per share of $1.81. The core operating models and company-wide productivity initiatives drove strong performance in the quarter. Advanced Engineered Materials expanded the opportunity pipeline and commercialized high value-add customer solutions across product lines while the Acetyl Chain exercised system-wide optionality, positioning Celanese for growth through the year. The primary difference between GAAP and non-GAAP results is from charges related to the Nanjing, China ethanol unit.
On 17 April 2017, Celanese Corporation (NYSE:CE) shares moved to $90.50 after starting the day at $89.00. Stock has got OUTPERFORM rating from 9 analysts of Thomson Reuters, 5 analysts given HOLD rating to the stock and 0 given UNDERPERFORM rating. Analyst’s mean target price for CE is $94.78 while analysts mean recommendation is 2.20.
At the movement International Game Technology PLC (NYSE:IGT) is under coverage by number of analysts. Buy rating has been given by 1 analysts to the company stock whereas no analyst given UNDERPERFORM rating to stock and 4 analysts given HOLD rating. The consensus recommendation by Thomson Reuters analysts is Outperform and their mean rating for the stock is 2.43 on scale of 1-5. Analysts mean target price for International Game Technology PLC (NYSE:IGT) is $28.60 while their mean recommendation is 2.40 (1=Buy, 5=sell).

If we look at stock performance in last active day trading, we see that stock has moved fell -2.52% to end the day at $21.29. The current share price indicate that stock is -32.54% away from its one year high and is moving 32.53% ahead of its 52-week low.

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Johnson & Johnson (JNJ) Receives Consensus Rating of “Hold” from Analysts

Apr 18, 2017 | Cerbat Gem

By Amy Steele

Johnson & Johnson (NYSE:JNJ) has been assigned an average recommendation of “Hold” from the nineteen analysts that are currently covering the firm. Two analysts have rated the stock with a sell recommendation, eleven have given a hold recommendation and six have given a buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $122.75.
JNJ has been the topic of several research reports. Vetr cut shares of Johnson & Johnson from a “hold” rating to a “sell” rating and set a $119.73 price target on the stock. in a research report on Tuesday, March 7th. Jefferies Group LLC boosted their price target on shares of Johnson & Johnson from $110.00 to $120.00 and gave the stock a “hold” rating in a research report on Friday, January 20th. Credit Suisse Group AG restated a “hold” rating on shares of Johnson & Johnson in a research report on Tuesday, December 20th. Wells Fargo & Co cut shares of Johnson & Johnson from an “outperform” rating to a “market perform” rating and boosted their price target for the stock from $112.28 to $112.80 in a research report on Thursday, January 26th. Finally, Zacks Investment Research cut shares of Johnson & Johnson from a “hold” rating to a “sell” rating in a research report on Tuesday, January 3rd.
Shares of Johnson & Johnson (NYSE:JNJ) opened at 125.72 on Tuesday. The stock has a 50 day moving average of $125.32 and a 200 day moving average of $118.02. Johnson & Johnson has a 52-week low of $109.32 and a 52-week high of $129.00. The stock has a market capitalization of $341.12 billion, a PE ratio of 21.20 and a beta of 0.74.
Johnson & Johnson (NYSE:JNJ) last announced its quarterly earnings results on Tuesday, January 24th. The company reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.02. Johnson & Johnson had a net margin of 22.78% and a return on equity of 25.61%. The company had revenue of $18.10 billion for the quarter, compared to analysts’ expectations of $18.28 billion. During the same quarter in the previous year, the business posted $1.44 earnings per share. Johnson & Johnson’s quarterly revenue was up 1.7% on a year-over-year basis. Analysts forecast that Johnson & Johnson will post $7.05 earnings per share for the current year.
In other news, VP Paulus Stoffels sold 22,000 shares of the business’s stock in a transaction on Wednesday, February 15th. The shares were sold at an average price of $117.29, for a total transaction of $2,580,380.00. Following the completion of the sale, the vice president now directly owns 127,650 shares of the company’s stock, valued at $14,972,068.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.11% of the stock is currently owned by insiders.
Hedge funds have recently modified their holdings of the stock. Lenox Wealth Advisors Inc. raised its stake in shares of Johnson & Johnson by 0.7% in the first quarter. Lenox Wealth Advisors Inc. now owns 871 shares of the company’s stock worth $108,000 after buying an additional 6 shares in the last quarter. Itau Unibanco Holding S.A. bought a new stake in shares of Johnson & Johnson during the third quarter worth about $104,000. Thomas J. Herzfeld Advisors Inc. bought a new stake in shares of Johnson & Johnson during the fourth quarter worth about $117,000. Empirical Finance LLC bought a new stake in shares of Johnson & Johnson during the fourth quarter worth about $144,000. Finally, Foundation Resource Management Inc. bought a new stake in shares of Johnson & Johnson during the first quarter worth about $204,000. 65.30% of the stock is owned by hedge funds and other institutional investors.
Johnson & Johnson Company Profile
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being.

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Johnson & Johnson: Help Me Actelion, You’re My Only Hope

Apr 18, 2017 | Barron's

By Ben Levison

Shares of Johnson & Johnson (JNJ) are on pace for their biggest drop since March 2009 after the health-care giant reported disappointing earnings.
Johnson & Johnson reported a profit of $1.83 a share, beating forecasts for $1.77, while sales of $17.77billion missed Street expectations for $18.02 billion. And while Johnson & Johnson raised its guidance for the year, the more optimistic outlook was due to its pending acquisition of Achtelion.
Cowen’s Joshua Jennings contends that the “the need for Actelion [was] highlighted by [the] 1Q’17 slow down.” He explains:
We would highlight that the Pharma pipeline remains robust but more meaningful contribution will kick in beyond 2017. Historical growth drivers decelerated in 1Q and are likely to remain at a more moderate growth clip through the rest of the year making the Actelion acquisition more timely than we had previously thought as the new franchise will bolster growth in front of the pipeline support. On the margin front, the stellar 330bps 2016 OM expansion pace moderated as expected as JNJ experienced 10bps of margin expansion. The $0.06 beat was driven primarily by a lower than expected tax rate and share count in our model thus the EPS beat is unlikely to offset concerns surrounding the top line growth trajectory of the core JNJ franchises.
Shares of Johnson & Johnson have dropped 3.6% to $121.17 at 11:15 a.m. today.

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Stocks drop as Goldman, Johnson & Johnson earnings disappoint

Apr 18, 2017 | MarketWatch

Wall Street opened lower on Tuesday, as a spate of weak earnings compounded concerns over this weekend’s French election and U.S.-North Korea tensions, helping to keep a lid on stocks.
A drop in shares of Goldman Sachs Group Inc. GS, -3.88% shaved more than 50 points off the Dow Jones Industrial Average DJIA, -0.34% after the storied investment bank’s first-quarter results, fell short of Wall Street expectations. Shares of Johnson & Johnson JNJ, -3.29% another Dow component, slid after the company reported a drop in sales that offset stronger-than-expected profits. The two companies were the biggest losers on the Dow.
The Dow DJIA, -0.36% dropped 53 points, or 0.3%, to 20,583, while the S&P 500 SPX, -0.17% fell 3 points, or 0.1%, to 2,346, as health-care and energy shares led the broad-market gauge lower. The Nasdaq Composite Index COMP, -0.11% lost 14 points, or 0.3%, to 5,381.
In an interview with the Financial Times, Treasury Secretary Steven Mnuchin said the Trump administration had not taken the controversial border-adjusted tax off the table, which was also helping to rattle stocks, Hogan said. The controversial provision would likely hurt import-dependent industries like retailers.
Tuesday’s earnings picture wasn’t all bad: Shares of Bank of America Corp. BAC, -0.57% and UnitedHealth Group Inc. UNH, +0.89% climbed after both companies reported strong profits.
Netflix Inc. NFLX, -2.12% shares opened higher even though the company revealed late Tuesday that during the first quarter it attracted fewer new subscribers than expected. Shares initially fell in post-market trading, but recovered as investors focused on the streaming company’s strong guidance, said Art Hogan, chief market strategist at Wunderlich Securities.
Karyn Cavanaugh, market strategist at Voya Investment Management, said she expects stocks to languish, largely due to recent batches of disappointing U.S. economic data and rising geopolitical tensions. Though this trend could reverse once a clearer picture of quarterly earnings emerges.
“The data, coupled with the geopolitical risk out there are making investors say ‘show me what you’ve got’—they want to see the earnings,” Cavanaugh said.
Tensions between the U.S. and North Korea have escalated since the U.S. ordered a Navy strike fleet to the waters off the Korean Peninsula. President Donald Trump said Monday that the government in Pyongyang has “gotta behave.” In response, a senior North Korean official said his country was “ready to react to any mode of war desired by the U.S.”
U.S. stocks finished higher on Monday, halting a three-session losing run.

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Pharma bellwether J&J not worried about drug pricing for specialty meds

Apr 18, 2017 | BioPharma Dive

By Ned Pagliarulo

Dive Brief:
·       Pharma giant J&J avoided the full weight of biosimilar competition to its top-selling drug Remicade (infliximab) for at least another quarter, reporting Tuesday only a 6% drop in worldwide first quarter sales from a year earlier.
·       But weaker-than-expected performance from Stelara (ustekinumab), Zytiga (abiraterone acetate) and Xarelto (rivaroxaban) — all top brands for the drugmaker — weighed on pharmaceutical sales overall.
·       Looking forward to the rest of 2017, J&J raised its sales guidance to reflect the expected impact of closing its $30 billion acquisition of the Swiss biotech Actelion later this year, forecasting $75.4 billion to $76.1 billion in annual revenues.
Dive Insight:
As the first pharma company to report earnings each quarter, J&J is usually looked to as a indicator of macro-level trends affecting the industry as a whole.
At the moment, ongoing scrutiny of drug pricing along with the potential for corporate tax reform in the U.S. are top of mind for investors and analysts alike, as both issues promise to broadly impact the sector.
Despite public backlash against pharma pricing practices, J&J doesn't anticipate making any dramatic changes to its methodologies for determining the cost of medicines, said Dominic Caruso, chief financial officer, on a call with analysts Tuesday morning.
Caruso noted that the majority of J&J's portfolio in areas like oncology and immunology is made of specialty medicines, which generally command higher prices than the more competitive primary care sectors. In cardiovascular and metabolic diseases, however, Caruso acknowledged that J&J is feeling the impact of greater payer pressure and higher competition on price.
Global sales of Xarelto, for example, fell by nearly 10% compared to a year prior as higher access discounts and the timing of "donut hole" costs in Medicare prescription drug coverage offset a higher market share.
While the acquisition of Actelion does beef up J&J's cardiovascular offerings, Caruso explained the company sees Actelion's marketed drugs for pulmonary aterial hypertension as specialty medicines and therefore less impacted by payer pushback.
In February, J&J released its first transparency report in a bid to expand disclosures on its pricing practices — a strategy adopted by several other drugmakers to stave off criticism. While the average annual list price of J&J medicines increased by 8.5% a year since 2012, net price increased remained in the lower single digits.
On tax reform, Caruso said legislative efforts appear stalled as members of Congress wait for further guidance from the White House. But J&J is encouraged by the direction of lawmakers' discussions, and supports (unsurprisingly) a lower corporate tax reform as well as shifting to a territorial tax system.
Overall, first quarter sales across all business units increased 1.6% to $17.77 billion, coming in below market expectations due to the weaker performance from pharmaceuticals and consumer sales.
More positively, the entry of Pfizer's Remicade biosimilar continues to have only a limited impact on J&J's Remicade sales. Pfizer launched Inflectra (infliximab-dyyb) in October, but physicians have so far appeared unwilling to switch patients from branded Remicade to the biosimilar, Caruso said.
Noting that Inflectra is not approved as an interchangeable product, Caruso told analysts to expect a slow shift away from Remicade. That will buy J&J time to cushion the blow, but puts pressure on newer medicines and the Actelion pick-up to deliver higher growth.

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Johnson & Johnson Pummeled After Mixed Q1 Report

Apr 18, 2017 | Benzinga

By Joel Elconin

Johnson & Johnson JNJ 3.5%shares are trading lower by $4.50 (3.4 percent) at $121.22 in Tuesday's session.
Before the open, the company reported mixed Q1 results that included an EPS beat of $0.06, but came up shy on revenues by $200 million. At this time, the Street appears to be putting more emphasis on the revenue shortfall.
After a lower open, Johnson & Johnson's stock managed only a $0.19 bounce to $123.37 before continuing its move lower. In the first minute of the session, it swooned to $121.40 before mounting a rebound that stalled at $122.74. After the failed rally, it has went on to make a new low at $121.10 and is attempting to stabilize in the lower $121.00 handle.
The current low coincides with its February 24 low of $120.90. f that low is breached, there may be limited support until the pair of lows in the the lower $119.00 handle from February 22 ($119.25) and February 23 ($119.48).

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J&J’s Actelion acquisition expected to close this quarter

Apr 18, 2017 | Drug Store News

By Brian Berk

NEW BRUNSWICK, N.J. — Johnson & Johnson confirmed Tuesday during its 2017 fiscal first-quarter earnings report that it expects its $30 billion acquisition of Actelion to close this quarter.
“The public tender offer for Actelion has been declared successful based on the number of shares tendered and regulatory approval has been obtained in six of seven jurisdictions in which the company filed for such approval, with antitrust approval from the European Commission pending.”
In fact, J&J stated is now including the estimated impact of the Actelion transaction in its financial guidance.
“The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products,” said Alex Gorsky, J&J’s chairman and CEO. “We look forward to the associates from Actelion joining the Johnson & Johnson Family of Cos.”
Drug Store News reported J&J would buy Actelion on Jan. 26.

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Valuation Concerns at J&J

Apr 18, 2017 | Morningstar

Johnson & Johnson reported first-quarter results largely in line with our expectations, and we don’t expect any major changes to our $108 fair value estimate. We continue to view the stock as slightly overvalued as the growth prospects for the company’s divisions don’t appear strong enough to support the current market price. Further, we are concerned that the pending acquisition of Actelion is an overpayment, partly motivated by an effort to accelerate growth in the drug group. Despite valuation concerns, the company’s wide moat continues to look strong with innovation and brand power continuing to drive stable cash flows.
Modest growth across the board led to the company’s largely flat operational growth of 1% year over year, excluding acquisition and divestitures. In the pharmaceutical group, price discounts, competitive pressures, and an unfavorable prior period adjustment weighed on sales. We expect increasing generic competition to lead to 3% average annual growth for the segment over the next three years. While we remain optimistic about cancer drugs Imbruvica and Darzalex, the increasing competition for the company’s leading drug Remicade from both branded and biosimilar drugs will create a tough headwind for growth. Additionally, while the Actelion drugs help boost top-line growth, we believe the deal came at too high of a price. Nevertheless, we expect the deal to close late in the second quarter, in line with management guidance. Outside of the drug group, the device and consumer divisions look poised to contribute similar long-term growth, resulting in overall company growth of close to 3% annually over the next three years. While the consumer group posted growth below this longer-term view in the quarter due partly to competitive pressures, we believe the brand power and entrenched products should return to a more normalized growth rate in the remainder of the year.

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Stocks fall as Goldman Sachs and Johnson & Johnson drag Dow lower

Apr 18, 2017 | CNBC

By Fred Imbert

U.S. equities fell on Tuesday after Goldman Sachs shocked Wall Street by missing estimates. Investors also remained vigilant amid U.S.-North Korea tensions and the nearing of the French presidential election.
"We always say the market moves on earnings and the expectation of earnings," said Jeff Carbone, managing partner of Cornerstone Financial Partners. "We're getting mixed results in the early part of the earnings season."
"Earnings were expected to be very good and now we're taking the 'very' part out of it," he said.
The Dow Jones industrial average dropped about 100 points, with Goldman shaving off 70 points and Johnson & Johnson taking out 30 points. The S&P 500 fell 0.2 percent with health care and financials leading decliners. The Nasdaq composite fell around 0.15 percent.
Goldman Sachs reported weaker-than-expected first-quarter results across the board, with trading revenue disappointing analysts.
"I'm a little surprised that they missed because the market did so well in the first quarter," said Bruce Bittles, chief investment strategist at Baird. The S&P 500 and the Dow Jones industrial average rose 5.53 percent and 4.56 percent last quarter, respectively.
Last quarter marked the first time since 2015 that Goldman's earnings per share missed analysts' expectations and the first time since the first quarter of last year that sales came below estimates.
Johnson & Johnson also reported mixed quarterly results which sent its shares dropping more than 3 percent. Video-streaming firm Netflix posted better-than-expected earnings, but its guidance fell short of estimates.
Bank of America, meanwhile, reported strong first-quarter results with almost every single metric meeting or topping analyst expectations.
The three major indexes snapped a three-day losing streak on Monday, with the Dow rising more than 180 points, albeit during the lightest trading volume day of the year following the Easter holiday.
"I think this market is trapped in a range and I still think there's some unfinished business to the downside," said Baird's Bittles.
Investors also remained cautious as U.S.-North Korea tensions lingered. Vice President Mike Pence reassured Japan of American commitment to reining in North Korea's nuclear and missile ambitions on Tuesday, after warning that U.S. strikes in Syria and Afghanistan showed the strength of its resolve.
Pence arrived in Tokyo from South Korea, where he assured leaders of an "iron-clad" alliance with the United States in the face of the reclusive North, which has conducted a series of missile and nuclear tests in defiance of U.N. sanctions.
U.S. Treasury prices rose, sending the benchmark 10-year note yield down to about 2.18 percent while the short-term two-year note yield slipped to 1.164 percent. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 14.5.
Investors also kept an eye on France, as campaigning ramped up ahead of the first round of the presidential election. Left-wing candidate Jean-Luc Melenchon's surge in polls added to investors' worries as it becomes unclear who will win the contest.
European equities fell broadly after UK Prime Minister Theresa May called for a snap election in June. The announcement also sent the British pound for a loop. The currency rose more than 2 percent to $1.284 after briefly falling more than 1 percent.
"No one was expecting this. Not least because the government itself ruled an election before 2020 out barely four weeks ago. But Theresa May has clearly smelt an opportunity to consolidate her mandate ahead of the Brexit negotiations," said Luke Bartholomew, investment manager at Aberdeen Asset Management.
In economic news, housing starts fell 6.8 percent last month, more than the expected 3.9 percent decline. Industrial production rose 0.5 percent last month, in line with expectations.
The Dow Jones industrial average fell 150 points, or 0.8 percent, to 20,486, with Goldman Sachs leading decliners and UnitedHealth the top advancer.
The S&P 500 dropped 11 points, or 0.5 percent, to trade at 2,337, with health care leading eight sectors lower and consumer staples the biggest riser.
The Nasdaq pulled back 23 points, or 0.4 percent, to 5,833.
About two stocks declined for every advancer at the New York Stock Exchange, with an exchange volume of 286 million and a composite volume of 1.393 billion in midday trade.

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JOHNSON & JOHNSON (JNJ) REACHES $121.42 AFTER 4.00% DOWN MOVE, EMPLOYERS HOLDINGS (EIG) SELLERS INCREASED BY 5.87% THEIR SHORTS

Apr 18, 2017 | Wolcott Daily

By Clifton Ray

Employers Holdings Incorporated (NYSE:EIG) had an increase of 5.87% in short interest. EIG’s SI was 228,900 shares in April as released by FINRA. Its up 5.87% from 216,200 shares previously. With 90,200
avg volume, 3 days are for Employers Holdings Incorporated (NYSE:EIG)’s short sellers to cover EIG’s short positions. The SI to Employers Holdings Incorporated’s float is 0.73%. About 21,349 shares traded. Employers Holdings, Inc. (NYSE:EIG) has risen 26.76% since September 9, 2016 and is uptrending. It has outperformed by 16.36% the S&P500.
The stock of Johnson & Johnson (NYSE:JNJ) is a huge mover today! About 7.16 million shares traded or 11.01% up from the average. Johnson & Johnson (NYSE:JNJ) has risen 6.34% since September 9, 2016 and is uptrending. It has underperformed by 4.06% the S&P500.The move comes after 6 months negative chart setup for the $328.08B company. It was reported on Apr, 18 by Barchart.com. We have $116.56 PT which if reached, will make NYSE:JNJ worth $13.12 billion less.
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The company has market cap of $328.08 billion. It operates through three divisions: Consumer, Pharmaceutical and Medical Devices. It has a 20.45 P/E ratio. The Company’s primary focus is products related to human health and well-being.
Among 14 analysts covering Johnson & Johnson (NYSE:JNJ), 6 have Buy rating, 1 Sell and 7 Hold. Therefore 43% are positive. Johnson & Johnson had 41 analyst reports since August 7, 2015 according to SRatingsIntel. The stock has “Buy” rating by UBS on Tuesday, September 22. The firm has “Market Perform” rating given on Thursday, January 26 by Wells Fargo. The firm has “Overweight” rating given on Wednesday, April 20 by Barclays Capital. RBC Capital Markets maintained the stock with “Outperform” rating in Wednesday, October 7 report. The stock of Johnson & Johnson (NYSE:JNJ) earned “Neutral” rating by Piper Jaffray on Monday, October 5. The stock of Johnson & Johnson (NYSE:JNJ) has “Neutral” rating given on Wednesday, April 20 by Goldman Sachs. The rating was maintained by Argus Research on Wednesday, April 20 with “Buy”. Societe Generale initiated the shares of JNJ in report on Wednesday, April 6 with “Hold” rating. The rating was maintained by S&P Research with “Buy” on Wednesday, October 14. The company was upgraded on Monday, March 14 by Goldman Sachs.
Since October 21, 2016, it had 1 insider purchase, and 5 insider sales for $14.88 million activity. Another trade for 50,000 shares valued at $6.18 million was sold by Duato Joaquin. PRINCE CHARLES bought $99,846 worth of stock or 875 shares. On Wednesday, February 1 Ullmann Michael H sold $2.45 million worth of Johnson & Johnson (NYSE:JNJ) or 21,735 shares. 14,543 shares were sold by Kapusta Ronald A, worth $1.78M on Tuesday, February 28. Shares for $1.99 million were sold by Pruden Gary J on Tuesday, February 28. Stoffels Paulus sold $2.58 million worth of Johnson & Johnson (NYSE:JNJ) on Wednesday, February 15.
Investors sentiment increased to 0.94 in 2016 Q4. Its up 0.12, from 0.82 in 2016Q3. It improved, as 63 investors sold Johnson & Johnson shares while 834 reduced holdings. 114 funds opened positions while 731 raised stakes. 1.72 billion shares or 0.88% more from 1.71 billion shares in 2016Q3 were reported. Raymond James Na has invested 1.83% of its portfolio in Johnson & Johnson (NYSE:JNJ). Alpha Cubed Invests has invested 2.16% of its portfolio in Johnson & Johnson (NYSE:JNJ). Massmutual Fsb Adv holds 0% of its portfolio in Johnson & Johnson (NYSE:JNJ) for 133,907 shares. 1.54 million were accumulated by Hl Financial Ltd Liability Corporation. 45,596 are held by Aspiriant Ltd Llc. Horizon Service Lc holds 3,425 shares. Cornerstone has invested 1.21% of its portfolio in Johnson & Johnson (NYSE:JNJ). Pub Sector Pension Inv Board has invested 0.68% of its portfolio in Johnson & Johnson (NYSE:JNJ). 3,819 were reported by Peregrine Asset Advisers. Moreover, Sva Plumb Wealth Mgmt Ltd Liability has 1.63% invested in Johnson & Johnson (NYSE:JNJ). Shapiro Ltd reported 0% in Johnson & Johnson (NYSE:JNJ). Benedict Finance has invested 3.54% in Johnson & Johnson (NYSE:JNJ). Amer Registered Invest Advisor owns 29,325 shares or 1.54% of their US portfolio. Washington Trust reported 106,312 shares. Moreover, Sandhill Capital Lc has 0.28% invested in Johnson & Johnson (NYSE:JNJ).
Investors sentiment increased to 1 in 2016 Q4. Its up 0.20, from 0.8 in 2016Q3. It is positive, as 9 investors sold Employers Holdings, Inc. shares while 57 reduced holdings. 19 funds opened positions while 47 raised stakes. 24.54 million shares or 1.25% less from 24.85 million shares in 2016Q3 were reported. First Tru Advsr Lp has 71,924 shares. Group Inc holds 23,516 shares. Nationwide Fund Advsrs accumulated 0.02% or 126,265 shares. California Public Employees Retirement owns 72,800 shares or 0% of their US portfolio. 267,861 are owned by Philadelphia Fincl Mgmt Of San Francisco Limited Liability Corporation. Great West Life Assurance Communication Can holds 0% or 44,077 shares in its portfolio. Capstone Asset Management holds 0.01% in Employers Holdings, Inc. (NYSE:EIG) or 9,810 shares. Metropolitan Life Insur Ny stated it has 0.01% in Employers Holdings, Inc. (NYSE:EIG). Retail Bank Of America De owns 25,576 shares for 0% of their portfolio. Victory Capital Management Inc accumulated 0% or 4,605 shares. Blackrock Institutional Tru Co Na invested in 772,093 shares. Invesco reported 107,066 shares. Lsv Asset Mngmt invested in 9,100 shares or 0% of the stock. Numeric Ltd Company invested 0.02% of its portfolio in Employers Holdings, Inc. (NYSE:EIG). Brandywine Global Inv Mgmt Limited Liability reported 0.03% of its portfolio in Employers Holdings, Inc. (NYSE:EIG).

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After Johnson & Johnson Earnings, Buy These Pharma Stocks

Apr 18, 2017 | Zacks

By Ryan McQueeney

Shares of Johnson & Johnson JNJ slid nearly 3.5% in morning trading Tuesday after the pharma giant’s first-quarter earnings results were met with mixed reactions from investors. As the sell-off continues, investors focused on large-cap pharma companies may want to move their money into stronger options this earnings season.
JNJ Earnings
For the first quarter, Johnson & Johnson posted earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.77. Revenues, on the other hand, came in below expectations. Johnson & Johnson posted quarterly revenues of $17.8 billion, which missed our consensus estimate of $18.0 billion.
The company’s Worldwide Pharmaceutical segment grew 0.8% year-over-year, with domestic pharma sales slipping 1.3% and international pharma sales growing 4.1%. Johnson & Johnson also said that its recent purchase of Actelion ALIOF should close in the second quarter.
Like many of its peers, Johnson & Johnson is facing generic competition and pricing pressure for some its pharma products, especially in the United States. Today’s price action most likely reflects investors’ hesitation towards the company’s slumping domestic sales figures.
Other Pharma Stocks to Buy
Johnson & Johnson is often considered a bellwether for the large-cap pharma industry, and while its earnings beat is hopefully a sign of things to come, there appear to other companies that are better positioned to post strong results this quarter.
One company to consider is Roche Holding AG RHHBY. This Swiss healthcare giant has a strong presence in the cancer, immunology, infectious diseases, and ophthalmology markets. The company has a deep pipeline and is working to build up its offerings in immuno-oncology market.
Roche has key data readouts lined up for 2017 and has already gained FDA approval for an important drug Ocrevus (MS) this year. The stock has outperformed its industry peers so far this year, and its Zacks Rank #1 (Strong Buy) pairs well with its “B” grades for Growth and Momentum headed into its earnings announcement.

Another stock to look at is Sanofi SNY. Sanofi has averaged an earnings beat of 4.77% over the last four quarters, and its fundamental metrics make it appealing for value-minded investments. Its Forward P/E ratio of 14.44 outpaces the industry average of 15.5, and its P/S ratio of 3.0 comes in better than the industry’s 4.1. Moreover, the P/B ratio for Sanofi is 1.8, less than 4.3 for the industry. These metrics have helped the stock earn an “A” grade for Value.

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3 Big Stock Charts for Tuesday: Progressive Corp (PGR), Johnson & Johnson (JNJ) and Goldman Sachs Group Inc (GS)

Apr 18, 2017 | Investor Place

And they’re off! Earnings season is hitting a stride this morning with 17 of the S&P 500 companies dropping their quarterly results on the market today. In addition, we’re seeing some volatility in stocks from the never-ending Brexit headlines, but the story of the day will still be earnings when the dust clears.
Wit that in mind, today’s three big stock charts dive into the movement of Goldman Sachs Group Inc (NYSE:GS), Johnson & Johnson (NYSE:JNJ) and Progressive Corp (NYSE:PGR) as their pre-market earnings releases have the technical charts making some noteworthy moves.
The financial stocks are coming up with a mixed earnings season so far as it has been hit-or-miss, but Goldman dropped a miss on the market this morning and GS stock is paying the price.
Goldman shares are trading 4% lower on the earnings release. The quick drop is troubling for a few reasons.
First, the trend of the 50-day moving average was already rolling over. Now, the move is going to start accelerating, adding some pressure to GS over the intermediate-term outlook. Second, the stock broke the $220-level, a key level that traders have been defending. Third, Goldman broke the lower Bollinger Band, accelerating the selling pressure on the stock.
Johnson & Johnson shares are trading lower this morning after the company’s earnings report revealed that it had missed earnings revenue targets.
JNJ stock has seen a bit of a “buy the rumor” rally ahead of this morning’s announcement, breaking back above the technically sensitive $125-level. That price was surrendered quickly with Johnson & Johnson shares now trading below $122.
The move below $122 takes the company back below its 50-day moving average, which is lending to the increase in trading volume this morning. From a short-term perspective, traders will want to see JNJ stock hold this level in order to confirm that the stock is a “buy the dip” candidate.
Johnson & Johnson shares also broke below their lower Bollinger Band this morning, suggesting that we may see an increase in the volatility trade. The lower band level sits right at the 50-day for JNJ stock, at $122.75.
The “buy the dip scenario gets stronger as Johnson & Johnson shares’ RSI reading slumped to an oversold reading on this morning’s weakness. This is the first time that we’ve seen the RSI reach this low of a level since the last earnings report, and right before an attractive “buy the dip” that saw shares rally more than 10% in a month.
A mixed report from Progressive has the shares trading 2% lower for the day, piercing the stock’s 50-day moving average for the first time since it crossed above the trendline in November.
The insurer posted quarterly earnings-per-share that beat estimates, but failed to meet the Street’s revenue expectations. The top-line miss is one of three over the last five quarter’s for PGR.
At this point, the selling is within the scope of what the charts reflect as being contained and not a cause for longer-term worry yet. Instead, traders should view this as longer-term investors using the opportunity to take profits from a stock that recently hit new all-time highs.
Two levels of support lie intact for Progressive shares at this point.
First, PGR stock’s 100-day moving average. This trendline, which remains in a bullish trend, sits at $37.31 and should bring technical buyers into the picture if it comes into “play”.
Second, the stock has clear chart support from the round-numbered $38-mark. We monitored the stock through short-term resistance in January that generated profit-taking. Weeks later, Progressive shares sliced through that resistance on heavy volume.

Finally, a short-term oversold situation will develop as PGR shares approach the round-numbered $38-mark. This will combine to form double-barreled support that will likely generate a “buy the dip” signal.

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Johnson & Johnson: No Surprises Here

Apr 19, 2017 | Seeking Alpha

By Stone Fox Capital

Summary
JNJ reported disappointing results for Q117.
The healthcare products company continues to signal the stock is expensive by making a $30 billion deal instead of repurchasing stock.
The stock isn't preferred with the limited organic growth despite a 2.6% dividend yield.
Johnson & Johnson (NYSE:JNJ) is down around 3% after the healthcare products company reported disappointing Q117 results. The recent rally and the meager organic growth supports my previous research that the stock was vastly overvalued.
Despite this warning, JNJ rallied to new highs recently at $129. The question now is whether the stock is touchable down at nearly $120.
The company reported a 5.8% gain in the quarterly earnings per share while generating revenue growth of only 1.7%. Even worse, the healthcare giant missed revenue estimates again. In fact, JNJ has missed revenue estimates five times in the last two years.
The issue all along is that the stock trades at a premium P/E multiple at over 17x even after the updated guidance based on the accretive Actelion (OTCPK:ALIOF) merger. Due to the expected close of the deal during Q2, JNJ increased the 2017 EPS forecast to $7.00 to $7.15, up from $6.93 to $7.08 previously.
While the EPS bump is always a good sign, the shift away from the history of share buybacks to a big $30 billion deal for Actelion speaks volumes to the valuation proposition. The deal guidance of annual EPS accretion in the $0.35 to $0.40 range is far lower than the EPS bump from repurchasing nearly 10% of the outstanding shares with the $30 billion JNJ is spending on Actelion.
At the current market cap of nearly $330 billion, the share count reduction would equate to 9% of the outstanding shares which would boost the original $7.00 EPS guidance for 2017 by roughly $0.63. As well, not having management distracted on integration issues would reduce the risk with the share buyback approach.

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Goldman Sachs, Johnson & Johnson Sink the DJIA Tuesday

Apr 19, 2017 | 24.7 Wall Street

By Paul Ausick

Markets opened lower Tuesday after disappointing quarterly results from some big names. An announced snap election in Britain and the coming French elections also got tossed into the mix. Healthcare and financial stocks performed worst today with the counter-cyclicals performing best. WTI crude oil for May delivery settled at $52.41 a barrel, down 0.5% on the day. June gold added 0.2% on the day to settle at $1,294.10. Equities were headed for a lower close shortly before the bell as the DJIA traded down 0.45% for the day, the S&P 500 traded down 0.19%, and the Nasdaq Composite traded down 0.04%.
The DJIA stock posting the largest daily percentage loss ahead of the close Tuesday was The Goldman Sachs Group Inc. (NYSE: GS) which traded down 4.64% at $215.77. The stock’s 52-week range is $138.20 to $255.15. Volume was about 3 times the daily average of around 3.8 million shares. The company missed estimates this morning.
Johnson & Johnson (NYSE: JNJ) traded down 2.99% at $121.96. The stock’s 52-week range is $109.32 to $129.00. Volume was about 70% above the daily average of around 73 million shares. Another disappointing quarterly report.
American Express Co. (NYSE: AXP) traded down 1.10% at $75.83. The stock’s 52-week range is $57.15 to $82.00. Volume was about 30% below the daily average of around 4 million shares. The credit card company is set to report results Wednesday.
The Travelers Companies Inc. (NYSE: TRV) traded down 0.98% at $120.73. The stock’s 52-week range is $103.45 to $125.49. Volume was about 35% below the daily average of around 1.4 million. The company had no specific news Tuesday.
Of the Dow stocks, 13 are on track to close higher Tuesday and 17 are set to close lower. The three financial stocks at the bottom of the DJIA account for slightly more than 15% of index’s total value.

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J&J Posts $17.7B in Revenue, Misses Estimates

Apr 19, 2017 | CFO

By Matthew Heller

Tepid growth in pharmaceuticals and consumer products held back first-quarter sales but the company is still confident it will meet its full-year guidance.
Johnson & Johnson reported first-quarter revenue that missed analysts’ estimates amid tepid growth in its pharmaceutical and consumer product sales.
The company, which is on track to close its $30-billion acquisition of Actelion in the current quarter, on Tuesday posted net earnings of $4.42 billion, or $1.61 per share, compared with $4.46 billion, or $1.59 per share, in the year-ago period.
Adjusted earnings came in at $1.83 per share, beating Wall Street expectations by 6 cents. But overall sales of $17.77 billion in the quarter fell short of analysts’ average estimate of $18.04 billion.
“Johnson & Johnson’s first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year,” CEO Alex Gorsky said in a news release.
Including the estimated impact of the Actelion transaction, J&J increased its sales guidance for the full-year 2017 to $75.4 billion to $76.1 billion and its adjusted earnings guidance for full-year 2017 to $7.00 to $7.15 per share.
Excluding Actelion, it maintained its prior forecast for sales of $74.1 billion to $74.8 billion and adjusted earnings of $6.93 to $7.08 per share.
“The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products,” Gorsky said.
But the company’s shares fell 3.6% on Tuesday to $121.11 — the biggest one-day percentage decline in more than eight years.
“The expected benefit from the Actelion acquisition this year came in lower than our estimates,” Edward Jones analyst Ashtyn Evans told Reuters. “Additionally, the company’s total growth came in lower than we expected, which is disappointing.”
For the first quarter, pharmaceutical sales rose only 0.8% to $8.25 billion as competition and pricing pressure the diabetes drug Invokana and the Xarelto blood thinner. Consumer product sales grew 1% to $3.23 billion amid a slowdown at retailers, inventory destocking and economic issues in Latin America.

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Drug Investors Feel Pain of Price Pressure as Earnings Take Hit

Apr 19, 2017 | Bloomberg

By Drew Armstrong and Tatiana Darie

The earnings season is off to a rough start for drugmakers.
Drug and health-care stocks were some of the worst performers in the U.S. on Tuesday as investors began to worry that pressure on pharmaceutical prices will once again hurt results.
Pharmaceutical and biotech stocks were among the biggest decliners in the Standard & Poor’s 500 Index, with medical distributors being the most hit. On the Nasdaq Composite Index, the health-care subgroup had the worst day, as well.
Investors are concerned that drugmakers won’t be able to increase prices, or will have to give steeper discounts -- hurting margins. Early in the morning, Cardinal Health Inc. cut its forecast for the fiscal year, citing declining prices. Soon after, Johnson & Johnson said that first-quarter sales of several key drugs fell short, partly because of price pressure.
That’s sparking fears of what’s to come when other drug and biotech companies report quarterly results in the coming weeks.
J&J’s pricing dynamics “should impact the broader biopharma industry,” Leerink analyst Geoffrey Porges said in a note to clients. “We do not anticipate that these issues will be isolated to J&J alone.” He called Amgen Inc. and Celgene Corp. “most vulnerable.”Broader Problems
Drug distributors are in trouble, too. Shares of McKesson Corp. and AmerisourceBergen Corp. dropped Tuesday along with Cardinal, which slumped 12 percent after Cardinal CEO George Barrett said the industry was “going through a challenging phase.”
“The pharma performance, in particular, is likely to worry investors, and naturally not just for J&J, but the broader space on the back of Cardinal’s report as well this morning,” said Michael Weinstein, an analyst with JPMorgan Chase & Co.
For a long time in the U.S., drugmakers could charge largely what they wanted. In recent years, however, health insurers, pharmacy benefit managers and politicians have put the industry under pressure, aggressively pitting rival manufacturers against each other, refusing to cover some treatments, and hauling executives up to Capitol Hill for a grilling before Congress.
While list prices are still going up, drugmakers have to give bigger rebates to health insurers and pharmacy benefit managers, who decide which drugs get covered and which ones are left off lists known as formularies.
J&J, the world’s biggest health-care company, fell 3.1 percent after posting its quarterly earnings Tuesday, the biggest stock decline in more than a year.
“If there’s a takeaway from today’s J&J report, it’s that the status quo got more expensive this quarter,” analyst Weinstein said in a note to clients. “Discounts to maintain formulary status spiked in the first quarter, making the pricing environment in several categories much more challenging.”‘Most Important Issue’
The biggest casualty of the new environment has been Valeant Pharmaceuticals International Inc., whose shares are worth just a tiny fraction of their August 2015 peak after the company’s aggressive pricing practices were targeted. Mylan NV, which was questioned about price increases on its EpiPen allergy shot, is down 22 percent in the last 12 months.
Drug pricing is a key challenge in this space, Credit Suisse pharma and biotech analysts wrote in a note Tuesday. They found that almost all of last year’s earnings growth in the industry could be attributed to price increases. The dependence on increases is “the most important issue for any pharmaceutical investor today,” the analysts said. Bristol-Myers Squibb Co. and AbbVie Inc. have the most at risk among U.S. companies, they said.
Some drugmakers have tried to get out in front of the issue. J&J and Merck & Co. have begun publishing pricing transparency reports. Others, like Allergan Plc, who has been among the most outspoken industry leaders, promised to raise prices only once a year and to limit increases to the single-digit percentage range.

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Dow slumps as Goldman, Johnson & Johnson weigh

Apr 18, 2017 | Yahoo Finance

The relief rally (^DJI, ^GSPC, ^IXIC) is short-lived as earnings swing back into focus, and knock the Dow lower, on a Goldman miss. Catch The Final Round at 4 p.m. with Jen Rogers and Yahoo Finance markets correspondent Nicole Sinclair.
Winners and losers
Stocks on the move lower include Harley Davidson as revenue missed and profit was down 25% from a year ago, Barracuda Networks as the cybersecurity firm did not issue a current-quarter forecast, and Johnson & Johnson – shares of the healthcare giant slipping as revenue slid as pricing competition hurt sales.
Stocks bucking the tough tape today include Cabela’s as the sporting goods retailer will sell its banking assets to Synovus Financial, Stratasys as Piper Jaffray upgraded the 3D printing company to Neutral and upped its price target, and GNC – shares of the nutrition supplements company flexing higher today as profit and revenue topped estimates, with transaction growth in Q1 up 9.3%.
Fashion Startups Are Eyeing The $220 Billion In Clothes No One Is Wearing
According to fashion resale site ThredUp, the average woman doesn’t wear 60% of what’s in her closet, representing $220 billion in retail value just sitting there. It drives women crazy, but Silicon Valley sees an opportunity as Alexandra Mondalek of Yahoo Style found out.
Looking aheadAt 10:30AM Eastern the EIA will release oil supply figures for the week. Last week crude inventories dropped 2.2 million barrels, the first weekly decline in a month.We’ve also got more earnings on tap with American Express, BlackRock, eBay, and Morgan Stanley all reporting.Finally, unicorns may be a thing of myth…but this Starbucks Unicorn Frappucino is very real. Launching tomorrow, and available for only 5 days, the magical drink is either a dream come true or your worst nightmare– made with pink powder, cream, mango syrup, and layered with a sour blue drizzle.

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Johnson & Johnson's Weak Pharma Revenue Could Spell Doom for Rest of Sector

Apr 19, 2017 | The Street

Johnson & Johnson ( JNJ) shares closed down about 3% after the company reported first quarter revenue that missed analysts' expectations due to lighter than expected pharmaceutical sales. The company reported first quarter earnings of $1.83 per share on revenue of $17.7 billion vs. Wall Street expectations of earnings of $1.77 per share on revenue of $18.04 billion. The company said U.S. pharmaceutical sales fell about 3% quarter-over-quarter to about $4.87 billion. The results could spell a rough patch coming up for biopharmaceutical competitors Amgen ( AMGN) andCelgene ( CELG) , among others. "While pricing power appears to remain strong, JNJ did report that lower prices in government managed care channels impacted annual comparisons" wrote Leerink analyst Geoffrey Porges in a note Tuesday. "We do not anticipate that these issues will be isolated to JNJ alone, but should impact the broader biopharma industry, and they confirm our cautious stance for our coverage universe in Q1." The brokerage pointed to other companies that have high reliance on Medicare Part B, legacy oncology, and outpatient specialty drug exposure. Leerink said of its coverage universe, which includes most of the large drug makers, Amgen and Celgene, "are the most vulnerable." Amgen is set to report first quarter earnings on April 26 while Celgene will report April 27. Johnson & Johnson said it saw "very little impact" from biosimilar competition to Remicade, its treatment for arthritis, ulcerative colitis and Crohn's Disease that is seeing increased competition from the likes of Pfizer (PFE) , but noted that its pharma sales dipped specifically due to weakness in the U.S. The results likely point to more successful quarters from companies that have more revenue coming in from overseas sales.
Leerink named Alexion Pharmaceuticals (ALXN) and AbbVie (ABBV) as companies that could be better insulated from weak U.S. pharma sales given their exposure overseas.
Johnson & Johnson also said during an earnings call Tuesday that it continues to evaluate options for its diabetes care business.
"We're evaluating various options for that business, whether it be a partnership or outright divestiture; whatever is best in terms of giving that business the best position to succeed and obviously, if we were to divest it, getting the right return for our shareholders," said chief financial officer Dominic Caruso on an earnings call Tuesday.
In January, Johnson & Johnson said it was looking at potential strategic options for the diabetes care unit, including LifeScan, Animas and Calibra Medical.
Shares of New Brunswick, N.J.-based Johnson & Johnson, close down about 3.1%, or $3.90 per share, to $121.30 on Tuesday.

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Johnson & Johnson Leading The Pharmaceutical Sector Lower

Apr 19, 2017 | RTT News

Pharmaceutical stocks are seeing considerable weakness in late-day trading on Tuesday, resulting in a 1.3 percent drop by the NYSE Arca Pharmaceutical Index. With the decline, the index has fallen to a two-month intraday low.
Healthcare giant Johnson & Johnson ( JNJ ) is leading the way lower after reporting better than expected first quarter earnings but on revenues that came in below estimates.

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U.S. stocks closer lower as Goldman, J&J disappoint with their results

Apr 18, 2017 | MarketWatch

By Ryan Vlastelica

U.S. stocks closed lower on Tuesday, pressured after a number of key companies disappointed with their quarterly results, renewing concerns that the market's valuation may not be supported by economic activity. The Dow Jones Industrial Average DJIA, -0.55% fell 113 points, or 0.6%, to 20,524. The S&P 500 SPX, -0.29%lost 6.8 points to 2,342, a drop of 0.3%. The Nasdaq Composite Index COMP, -0.12%fell 7 points to 5,849, a drop of 0.1%. Among the biggest drags on the day was Goldman Sachs Group Inc. GS, -4.72% which fell 4.7% after its results fell short of analyst forecasts. Johnson & Johnson JNJ, -3.10% lost 3.1%; the company posted a drop in sales in the first quarter. Both are Dow components, accounting for the outsized loss in the blue-chip average. Separately, Netflix Inc. NFLX, -2.64% shed 2.6% on concerns about the company's ability to attract and retain new users. While major indexes ended off their lows of the session, market participants have been looking to corporate earnings to justify a multimonth rally in equities that had taken stock benchmarks to repeated records, though the rally has stalled as doubts about valuations pile up and amid concerns over President Donald Trump's ability to quickly implement his economic agenda.

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Johnson & Johnson, Goldman sneeze and stocks catch a cold

Apr 19, 2017 | Associated Press

By Marley Jay

U.S. stocks fell Tuesday after weak first-quarter reports from Johnson & Johnson and Goldman Sachs frustrated investors who hope that company earnings are on the rise. Health care companies lost the most.
Wall Street has high hopes for company earnings this spring, and weak results from the world's largest health care products company and one of the biggest financial firms had them concerned. Johnson & Johnson took its biggest one-day loss in a year. Investors also looked for safety after the British government called for a surprise early election next month. Bond prices and the pound rose and European stock indexes tumbled.
Kate Warne, an investment strategist for Edward Jones, said Goldman Sachs and Johnson & Johnson had a dramatic effect on stocks because investors expect a very strong round of company earnings reports this month. According to S&P Global Markets Intelligence, investors expect first-quarter earnings for S&P 500 companies to rise almost 10 percent compared to last year. That would be the biggest jump since 2014.
"The reason it's so important is that the stronger growth is likely to support higher stock prices even in the absence of pro-growth policies from the Trump administration," she said.
The Standard & Poor's 500 index shed 6.82 points, or 0.3 percent, to 2,342.19. The Dow Jones industrial average lost 113.64 points, or 0.6 percent, to 20,523.28. Goldman Sachs was responsible for most of that loss.
The Nasdaq composite fell 7.32 points, or 0.1 percent, to 5,849.47. The Russell 2000 index of small-company stocks recovered from an early loss and rose 0.71 points, close to 0.1 percent, to 1,361.89.
On Monday stocks made their biggest gain in six weeks. But over the last few weeks they've mostly drifted lower while bond yields have fallen to five-month lows.
Johnson & Johnson stumbled after investors were disappointed with its sales. Revenue from its biggest-selling drug, the Crohn's disease treatment Remicade, fell 6 percent. Meanwhile growth for many consumer health products slowed, and payers demanded bigger rebates on treatments for cardiovascular ailments, diabetes, and primary care products.
The maker of Tylenol and Band-Aids lost $3.90, or 3.1 percent, to $121.82.
Prescription drug distributor Cardinal Health also dropped after it gave weak profit forecasts for this year and next as drug prices continue to fall. It will also pay $6.1 billion to buy a group of businesses from medical device maker Medtronic. Cardinal Health sank $9.44, or 11.5 percent, to $72.39. Competitors AmerisourceBergen and McKesson each fell about 5 percent.
Goldman Sachs' revenue fell short of investor projections in the first quarter as its highly-regarded trading desks didn't perform as well as their competitors. The stock gave up $10.6, or 4.7 percent, to $215.59, its biggest loss since June. The stock reached all-time highs above $250 a share in March.
British Prime Minister Theresa May reversed her position by calling for an early general election in June. May formally triggered Britain's exit from the European Union last month and she intends to seek a stronger parliamentary mandate. The pound climbed after May's announcement on the hope that the election will result in May getting a better deal for Britain in its talks with the EU. It rose to $1.2848 from $1.2563.
European stocks fell, as the vote creates even more political uncertainty in Europe days before the first round of French presidential voting. Polls don't give a clear edge to any of the four leading candidates ahead of Sunday's vote. The top two will advance to a May 7 runoff and investors are unsettled by the chance that either of the far-left or far-right candidates could pull off a victory. Britain's FTSE 100 dropped 2.5 percent and France's CAC 40 lost 1.6 percent. In Germany the DAX shed 0.9 percent.
As investors snapped up government bonds, their prices jumped. The yield on the 10-year Treasury note fell to 2.18 percent, its lowest since Nov. 11. It finished at 2.25 percent Monday.
Investors also bought shares of companies that pay big dividends. Household goods makers like Kraft Heinz and Molson Coors, along with utilities, real estate investment trusts and phone companies finished higher.
Streaming video company Netflix sagged after it didn't gain as many subscribers in the first quarter as investors hoped. Its second-quarter profit guidance also fell short of analyst estimates. Netflix lost $3.89, or 2.6 percent, to $143.36.
U.S. crude oil futures lost 24 cents to $52.41 a barrel in New York. Brent crude, used to price international oils, lost 47 cents to $54.89 per barrel in London.
Wholesale gasoline fell 1 cent to $1.71 a gallon and heating oil dipped 1 cent to $1.62 a gallon. Natural gas lost 2 cents to $3.15 per 1,000 cubic feet.
Gold rose $2.20 to $1,294.10 an ounce. Silver skidded 24 cents, or 1.3 percent, to $18.27 an ounce. Copper fell 7 cents, or 2.6 percent, to $2.53 a pound.
The dollar slipped to 108.42 yen from 108.59 yen. The euro rose to $1.0730 from $1.0642.
The benchmark Nikkei 225 index in Japan added 0.4 percent while South Korea's Kospi edged up 0.1 percent to 2,148.46. The Hang Seng of Hong Kong shed 1.4 percent.

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Will Biotechs Feel Johnson & Johnson’s Pain?

Apr 19, 2017 | Barron's

By Crystal Kim

Johnson & Johnson (JNJ) reported disappointing earnings results on Tuesday due to weaker-than-expected sales in the U.S.
Leerink's Geoffrey Porges in a report published today says that JNJ's results highlight a number of issues for large-cap biotechnology companies. Johnson & Johnson is down 3.3% to around $121.54, meanwhile the iShares Nasdaq Biotechnology ETF (IBB) has fallen 1.22%.
Porges expects U.S. sales misses to be offset by smaller beats from international markets, which means that companies that derive a larger portion of revenue from outside of the U.S. stand to gain. Why does he have a cautious outlook? He explains:
"We previously noted for biopharma companies that the slowdown in US prescription data growth, sequential and annual decline in shipping days, normal Q1 seasonality issues, and ~2% negative FX effect, positively offset by early January price increases, would lead to in-line results for the quarter and range-bound trading for large cap biotech stocks through earnings.
While pricing power appears to remain strong, JNJ did report that lower prices in government managed care channels impacted annual comparisons. We do not anticipate that these issues will be isolated to JNJ alone, but should impact the broader biopharma industry, and they confirm our cautious stance for our coverage

universe in Q1. Particularly, JNJ’s results and disclosed dynamics bode poorly for companies with high Medicare Part B, legacy oncology, and outpatient specialty drug exposure, of which AMGN (MP) and CELG (MP) are the most vulnerable in our coverage universe."

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Television Coverage

Squawk Box Clip

Apr 18, 2017 | CNBC

View Clip Here: http://app.criticalmention.com/app/#clip/view/26917318?token=b7f37510-c841-4256-9245-5acace1fef42 (1:32)

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Squawk Box Short Clip

Apr 18, 2017 | CNBC

View Clip Here: http://app.criticalmention.com/app/#clip/view/26917351?token=b7f37510-c841-4256-9245-5acace1fef42 (00:20)

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Mornings with Maria Bartiromo Clip

Apr 18, 2017 | Fox Business

View Clip Here: http://app.criticalmention.com/app/#clip/view/26917315?token=b7f37510-c841-4256-9245-5acace1fef42 (00:35)

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Varney & Company Clip

Apr 18, 2017 | Fox Business

View Clip Here: http://app.criticalmention.com/app/#clip/view/26926214?token=b7f37510-c841-4256-9245-5acace1fef42 (00:45)

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Bloomberg Markets: America

Apr 18, 2017 | Bloomberg TV

View Clip Here: http://app.criticalmention.com/app/#clip/view/26926200?token=b7f37510-c841-4256-9245-5acace1fef42 (00:15)

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