Preview Newsletter

J&J 3Q Earnings Media

Traditional Media Coverage

Johnson & Johnson Q3 Income Rises 11%
Oct 17, 2017 | Nasdaq

Johnson & Johnson ( JNJ ) released earnings for its third quarter that rose from last year.The company said its bottom line climbed to $5.21 billion, or $1.90 per share. This was up from $4.68 billion, or $1.68 per share, in last year's third quarter.
J&J reports 11.9 percent fall in quarterly profit
Oct 17, 2017 | Reuters

Johnson & Johnson (JNJ.N), which completed its $30 billion acquisition of Swiss biotech Actelion in June, reported a 11.9 percent fall in quarterly profit as costs rose.
J&J reports 11.9 percent fall in quarterly profit
Oct 17, 2017 | CNBC

Johnson & Johnson, which completed its $30 billion acquisition of Swiss biotech Actelion in June, reported an 11.9 percent fall in quarterly profit as costs rose.
Johnson & Johnson tops Street 3Q forecasts
Oct 17, 2017 | Financial Post

Johnson & Johnson (JNJ) on Tuesday reported third-quarter earnings of $3.76 billion. The New Brunswick, New Jersey-based company said it had profit of $1.37 per share. Earnings, adjusted for amortization costs and costs related to mergers and acquisitions, came to $1.90 per share.
Johnson & Johnson's stock jumps after profit and sales beat, raised outlook
Oct 17, 2017 | MarketWatch
By Tomi Kilgore

Shares of Johnson & Johnson JNJ, +1.09% rallied 1.4% in premarket trade Tuesday, after the drug and consumer products company beat third-quarter earnings expectations and raised its full-year outlook.
Johnson & Johnson beats by $0.10, beats on revenue
Oct 17, 2017 | SeekingAlpha
By Mamta Mayani

Johnson & Johnson (NYSE:JNJ): Q3 EPS of $1.90 beats by $0.10.
J&J climbs after earnings beat and higher guidance
Oct 17, 2017 | Financial Times
By David Crow

Johnson & Johnson posted third quarter sales and profits that beat Wall Street expectations and raised its full-year forecasts as it kicked off the earnings season for healthcare sector.
Johnson & Johnson Lifts FY17 Forecast As Q3 Results Top Estimates
Oct 17, 2017 | Nasdaq

Drug major Johnson & Johnson (JNJ) on Tuesday lifted its forecast for fiscal 2017 adjusted earnings per share and sales. In its third quarter, net profit declined, despite higher sales. However, both adjusted profit and topline beat analysts' estimates.
J&J (JNJ) Beats on Q3 Earnings & Sales, Ups 2017 View
Oct 17, 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.
Pharma business, Actelion buy drive J&J's profit beat
Oct 17, 2017 | Reuters

(Reuters) - Johnson & Johnson (JNJ.N) reported a higher-than-expected quarterly profit, driven by its pharmaceutical business and its recent acquisition of Swiss biotech Actelion and other businesses.
Johnson & Johnson raises guidance as earnings beat
Oct 17, 2017 | The Wall Street Journal
By Cara Lombardo

Johnson & Johnson JNJ -0.23% increased its sales and profit guidance for the third quarter in a row as the company’s pharmaceutical unit helped deliver its biggest earnings beat so far this year.
Johnson & Johnson's stock jumps after profit and sales beat, raised outlook
| Morningstar

Shares of Johnson & Johnson (JNJ) rallied 1.4% in premarket trade Tuesday, after the drug and consumer products company beat third-quarter earnings expectations and raised its full-year outlook.
Johnson & Johnson (JNJ) Tops Q3 EPS by 10c; Raises Outlook
Oct 17, 2017 | Street Insider

Johnson & Johnson (NYSE: JNJ) reported Q3 EPS of $1.90, $0.10 better than the analyst estimate of $1.80. Revenue for the quarter came in at $19.7 billion versus the consensus estimate of $19.28 billion.
Johnson & Johnson discards two hoped-for billion-dollar drugs (UPDATE -1)
Oct 17, 2017 | Market Watch
By Emma Court

Johnson & Johnson has discarded two drugs that the pharmaceutical company said just months ago had blockbuster potential—indicating they could bring in at least a billion dollars in annual revenue.
Johnson & Johnson has discarded two drugs that the pharmaceutical company said just months ago had blockbuster potential—indicating they could bring in at least a billion dollars in annual revenue. The company JNJ, -0.23% made the announcement on Tuesda
Oct 17, 2017 | Mass Device
By Brad Perriello

Although third-quarter profits for Johnson & Johnson (NYSE:JNJ) were off nearly -13%, the healthcare giant still managed to top the consensus estimate for sales and earnings per share on a top-line gain of more than 10%.
Johnson & Johnson (JNJ) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS
| American Banking and Market News

Johnson & Johnson (NYSE:JNJ) announced its earnings results on Tuesday. The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.10, Bloomberg Earnings reports.
J&J Fends Off Competition for Top Drug, Raises 2017 Forecast (UPDATE -1)
Oct 17, 2017 | Bloomberg
By Jared Hopkins

Johnson & Johnson’s top-selling biotechnology drug Remicade fended off competitors in the third quarter, amid accusations by a rival drugmaker that it’s using unfair tactics to block patients from getting alternative products.
Dow Stock J&J Pops After Topping Sales, Profit Expectations
Oct 17, 2017 | Investor’s Business Daily
By Alison Gatlin

Dow component Johnson & Johnson (JNJ) early Tuesday reported adjusted income of $1.90 per share on sales of $19.7 billion for the third quarter compared with $1.68 and $17.8 billion, respectively, in the year-earlier period.
New cancer drugs help J&J top profit estimates
Oct 17, 2017 | Reuters

Shares of J&J, part of the Dow Jones Industrial Average, were up 1.3 percent in premarket trading on Tuesday. quarters.
Johnson & Johnson beats earnings and revenue forecasts
| Capital.com
By James Hester

Johnson & Johnson shares looked set for a positive start today after the company reported strong financial results for the third quarter and raised its guidance for the full year.
J&J jumps after pharma sales help to beat third-qtr estimates
Oct 17, 2017 | The Pharma Letter

Johnson & Johnson (NYSE: JNJ), the world’s largest healthcare company, looked set to open trading on Tuesday around 1% up on the previous close, after its third-quarter financial results exceeded the expectations of analysts.
Johnson & Johnson (JNJ): Will The Growth Last?
Oct 17, 2017 | Simply Wall Street
By Frank Brewer

Johnson & Johnson (NYSE:JNJ) is predicted to grow its earnings per share by a robust double-digit 28.15% over the next three years. At a current EPS of $6.025, this growth rate means shareholders can expect an impending EPS of $7.721.
Johnson & Johnson ups full year guidance after third quarter beats market expectations
| Proactive Investors

Johnson & Johnson (NYSE:JNJ) has upped both its sales and profit guidance for the full year after the world’s largest healthcare company reported market beating third quarter numbers. In premarket trade, its shares were up 1.27% at US$137.85.
Johnson & Johnson Pharmaceutical, Domestic Sales Fuel Growth
| 24/7 Wall Street
By Chris Lange

Johnson & Johnson (NYSE: JNJ) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company said that it had $1.90 in earnings per share (EPS) and $19.7 billion in revenue, which compares with consensus estimates from Thomson Reuters of $1.80 in EPS and revenue of $19.28 billion. In the same period of last year, it posted EPS of $1.68 and $17.82 billion in revenue.
Johnson & Johnson's third-quarter prescription drug sales rise 15.4 percent, lifted by Actelion purchase
| First Word Pharma
By Joe Barber

Johnson & Johnson said Tuesday that third-quarter sales of prescription drugs climbed 15.4 percent year-over-year to $9.7 billion, topping analyst estimates of $9.3 billion, boosted by the first full quarter of revenue from the acquisition of Actelion.
Johnson & Johnson (JNJ) Has Risen To A New High On Strong Q3 Earnings
| Nasdaq

RTTNews.com) - Johnson & Johnson ( JNJ ) reported third quarter EPS of $1.90 Tuesday morning, up from $1.68 last year. The consensus estimate was for EPS of $1.80.
Johnson & Johnson tops Street 3Q forecasts, hikes forecast (UPDATE -3)
Oct 17, 2017 | Associated Press
By Linda Johnson

Higher spending across the board drove Johnson & Johnson’s third-quarter profit down 12 percent, despite a big sales jump fueled by recent acquisitions, hot new cancer drugs and strong sales of other key medicines.
Johnson & Johnson (NYSE:JNJ) Achieve New Highs
| Aiken Advocate

Shares of Johnson & Johnson (NYSE:JNJ) have seen a consistent move higher lately. The stock has reached the $138.71 mark after a recent check. This move has generated increased interest from both analysts and investors.
Johnson and Johnson raises full year targets after strong third quarter
| Digital Look
By Iain Gilbert

Healthcare giant Johnson and Johnson posted higher than expected profits for the three months to 30 September thanks to increased demand for its new cancer drugs and the additional revenue afforded to the group from its June acquisition of Swiss biotech company Actelion.
UnitedHealth and Johnson & Johnson Lead Bruised Healthcare Sector to Gains
| The Street
By Keris Alison Lahiff

Earnings beats from UnitedHealth Group Inc. (UNH - Get Report) and Johnson & Johnson (JNJ - Get Report) led the healthcare sector to recover from a days-long presidential beating.
J&J: Strong Earnings Is the Best Medicine
| Barron’s
By Johanna Bennet

Shares of Johnson & Johnson (JNJ) are climbing after the world’s largest healthcare conglomerate apparently delivered the good with its third quarter financial results.
J&J’s profit beat estimates thanks to new cancer drugs
| Irish Times

Pharma giant Johnson & Johnson reported a higher-than-expected quarterly profit and raised its full-year forecast, driven by strong demand for its new cancer drugs and gains from its acquisition of Swiss biotech Actelion.
Robust Drug Sales Lift Johnson & Johnson's 3rd Quarter
| MorningStar

Johnson & Johnson (JNJ) reported third-quarter results that exceeded both our and consensus expectations, but we don’t expect any major changes to our fair value estimate and shares continue to look slightly overvalued. Despite strong gains in the drug group, both the consumer and device divisions only gained 1% operationally.
J&J Has Actually Earned Its Record Stock Price
| Bloomberg Gadfly
By Max Nisen

Johnson & Johnson has been flirting with share-price records throughout 2017. It hit a new one Tuesday after it reported third-quarter earnings results that beat Wall Street sales and profit expectations. J&J raised its full-year earnings outlook and reported growth in all three of its business lines. Even the news it was spiking two prominent drug programs wasn't enough to derail its blue-chip momentum.
J&J (JNJ) Beats on Q3 Earnings, Actelion Buyout Drives Sales
| Zacks Equity Research

Johnson & Johnson - JNJ reported better-than-expected third-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and sales. The drug and consumer products giant raised its 2017 sales and profit outlook, which sent shares up 1.5% in pre-market trading .
Johnson & Johnson says recent hurricane activity had ‘modest’ effect on company
| Market Watch
By Emma Court

The three recent U.S. hurricanes may affect drug and medical device makers’ earnings this season. But exactly how, and to what degree, remains to be seen. Johnson & Johnson JNJ, +2.70% , which reports earnings early and is considered a bellwether for the drug industry, said on Tuesday that weather-related events had a “modest” but limited impact on total overall growth of its medical device unit. Company shares rose 2.4% in heavy morning trade.
Johnson & Johnson, Harley-Davidson Higher on Good 3rd-Quarter Results
| Guru Focus
By Omar Venerio

U.S. stock market traded relatively flat in premarket trading on Tuesday, but the Dow Jones Industrial Average rose after the market opened. The S&P 500 and Nasdaq Composite were lower. Johnson & Johnson (NYSE:JNJ) jumped more than 2% on the back of the company reporting its financial results for the third quarter.
Johnson & Johnson Outlook Buoyed by Drug Unit (UPDATE – 1)
| The Wall Street Journal
By Jonathan D. Rockoff and Cara Lombardo

Johnson & Johnson JNJ +2.70% increased its 2017 sales and adjusted profit guidance for the third quarter in a row, though net income in the quarter fell due to one-time items and amortization related to the company’s ActelionALIOY -0.09% acquisition.
Understanding Johnson & Johnson's Spectacular Q3 Performance
| Seeking Alpha
By Nick McCullum

On October 17, 2017, Johnson & Johnson reported earnings for its third quarter of fiscal 2017. The company reported double-digit growth in both sales and earnings.
New cancer drugs help J&J top profit estimates (UPDATE - 5)
| Reuters
By Akankshita Mukhopadhyay and Michael Erman

Johnson & Johnson posted better-than-expected third-quarter earnings, raising its full-year forecast due to growth from new cancer drugs and high-margin treatments picked up in its $30 billion acquisition of Actelion earlier this year.
Johnson & Johnson (JNJ) Beat Q3 Earnings, Ups Forecast
| Investor Place
By William White

Johnson & Johnson (NYSE:JNJ) stock was up today on positive earnings for the third quarter of 2017. Johnson & Johnson’s earnings per share for the third quarter of the year was $1.90. This is a 13% increase over its earnings per share of $1.68 from the third quarter of 2016. It was also a plus for JNJ stock by beating Wall Street’s earnings per share estimate of $1.80.
Johnson & Johnson Jumps on Pharma Strength
| The Motley Fool
By Dan Caplinger

Johnson & Johnson (NYSE:JNJ) has been a behemoth in the U.S. healthcare space for decades. Yet as a mature company, J&J faces the inevitable challenge of finding ways to keep its growth rates up even as its business gets ever larger. Results from recent quarters had shown signs of potentially slowing increases in sales and profits, and that raised some worries among longtime investors that Johnson & Johnson might have hit peak growth in its core business.
Healthcare Drives Small Gains for Dow While Rest of Market Slips
| The Street
By Keris Alison Lahiff

The healthcare sector rose on Tuesday, Oct. 17, following positive earnings from UnitedHealth Group Inc. (UNH - Get Report) and Johnson & Johnson (JNJ - Get Report) but the rest of the market was trading lower.
Johnson & Johnson Looks Overvalued Today
| Morningstar

Third-quarter earnings were ahead of Street expectations, driven mostly by robust growth in the drug division.
Are Investors Shying Away from Shares of Johnson & Johnson (NYSE:JNJ)?
| Morgan Leader

Strategic investors have taken a closer look of late at shares of Johnson & Johnson (NYSE:JNJ). Given the cheap price, many are wondering if there is now value and potential upside to the name. During the most recent session, shares touched $140.97 after moving 2.21%.
Johnson & Johnson Reports Double-Digit Sales and Adjusted Earnings Increases for Third Quarter
| Vision Monday

Johnson & Johnson (NYSE: JNJ) reported Tuesday that sales in its third quarter rose 10.3 percent to $19.7 billion, while sales in the U.S. market increased 9.7 percent in the period. On an “operational” basis, J&J’s sales rose 9.5 percent, according to the company’s announcement.
J&J: Puerto Rico Operations Still Open, Limited Impact From Hurricanes
| The Street
By Armie Margaret Lee

Johnson & Johnson (JNJ - Get Report) said Tuesday, Oct. 17, the recent hurricanes had a limited impact on the company's sales.
What's Powering Johnson & Johnson's Impressive Quarterly Earnings?
| The Motley Fool
By Todd Campbell

Johnson & Johnson (NYSE:JNJ) surprised investors with better-than-hoped-for top-line and bottom-line performance in the third quarter, and that news sent shares soaring on Tuesday
Johnson & Johnson: Q3 highlights and key takeaways
| FirstWordPharma
By Michael Flanagan

Pharma revenues grew during the period by nearly 15 percent year-over-year, with the performance being driven in part by strong sales for Remicade (infliximab) and Stelara (ustekinumab), which beat consensus estimates by $124 million (12 percent) and $67 million (4 percent), respectively.
Johnson & Johnson shares hit a fresh all-time high on Tuesday as third-quarter earnings beat estimates, full-year forecast revised up
| Binary Tribune

Johnson & Johnson’s third-quarter earnings, reported yesterday, outstripped market expectations, supported by strong performance at the company’s pharmaceuticals segment. J&J also revised up its full-year earnings forecast due to potentially stronger demand for its new cancer drugs.
Dow Stock J&J Pops After Topping Sales, Profit Expectations
Oct 18, 2017 | Investor's Business Daily
By Allison Gatlin

Dow component Johnson & Johnson (JNJ) surpassed Wall Street's third-quarter expectations early Tuesday on strength in its pharmaceutical unit and boosted its 2017 guidance — prompting shares to pop in premarket trades.
Johnson & Johnson: Amazing Company, But There Is Something Wrong
| Seeking Alpha

The company just reported its latest earnings. Revenues and EPS are up, beating estimates. Still, there is something wrong with JNJ.

Broadcast Media Coverage

Dominic Caruso Interview
Oct 17, 2017 | CNBC Squawk Box

https://app.criticalmention.com/app/#clip/view/30140819?token=c4bed28a-583e-4cc9-bdc1-796d91f33a0e
Dominic Caruso Interview
Oct 17, 2017 | Bloomberg Daybreak Americas

https://app.criticalmention.com/app/#clip/view/30140851?token=c4bed28a-583e-4cc9-bdc1-796d91f33a0e
Jim Cramer discusses JNJ guidance raise
Oct 17, 2017 | CNBC Squawk Box

https://app.criticalmention.com/app/#clip/view/30143344?token=5df66f0b-fecc-4a5e-93ef-87e7a24b4ccb
Jim Cramer on JNJ earnings beats
| CNBC Squawk on the Street

https://app.criticalmention.com/app/#clip/view/30148876?token=5df66f0b-fecc-4a5e-93ef-87e7a24b4ccb
Meg Tirrell on JNJ Earnings and Talc Lawsuits
Oct 17, 2017 | CNBC Power Lunch

https://app.criticalmention.com/app/#clip/view/30148622?token=5df66f0b-fecc-4a5e-93ef-87e7a24b4ccb
Mad Money
Oct 18, 2017 | CNBC Mad Money

https://app.criticalmention.com/app/#clip/view/30159388?token=a1186a4a-dfd9-462e-b453-dd73a1ab85ce

Traditional Media Coverage

Johnson & Johnson Q3 Income Rises 11%

Oct 17, 2017 | Nasdaq

Johnson & Johnson ( JNJ ) released earnings for its third quarter that rose from last year.
The company said its bottom line climbed to $5.21 billion, or $1.90 per share. This was up from $4.68 billion, or $1.68 per share, in last year's third quarter.
Analysts had expected the company to earn $1.80 per share, according figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company said revenue for the quarter rose 10.3% to $19.65 billion. This was up from $17.82 billion last year.
Johnson & Johnson earnings at a glance:
-Earnings (Q3): $5.21 Bln. vs. $4.68 Bln. last year.
-Earnings Growth (Y-o-Y): 11.3%
-EPS (Q3): $1.90 vs. $1.68 last year.
-EPS Growth (Y-o-Y): 13.1%
-Analysts Estimate: $1.80
-Revenue (Q3): $19.65 Bln vs. $17.82 Bln last year.

-Revenue Change (Y-o-Y): 10.3%

Return to headline | Return to top
J&J reports 11.9 percent fall in quarterly profit

Oct 17, 2017 | Reuters

Johnson & Johnson (JNJ.N), which completed its $30 billion acquisition of Swiss biotech Actelion in June, reported a 11.9 percent fall in quarterly profit as costs rose.
The company’s net earnings fell to $3.76 billion, or $1.37 per share, in the third quarter from $4.27 billion, or $1.53 per share, a year earlier.

However, the diversified healthcare company’s sales rose 10.3 percent to $19.65 billion in the quarter.

Return to headline | Return to top
J&J reports 11.9 percent fall in quarterly profit

Oct 17, 2017 | CNBC

Johnson & Johnson, which completed its $30 billion acquisition of Swiss biotech Actelion in June, reported an 11.9 percent fall in quarterly profit as costs rose.
The company's net earnings fell to $3.76 billion, or $1.37 per share, in the third quarter from $4.27 billion, or $1.53 per share, a year earlier.
However, the diversified healthcare company's sales rose 10.3 percent to $19.65 billion in the quarter

Return to headline | Return to top
Johnson & Johnson tops Street 3Q forecasts

Oct 17, 2017 | Financial Post

NEW BRUNSWICK, N.J. (AP) — Johnson & Johnson (JNJ) on Tuesday reported third-quarter earnings of $3.76 billion.
The New Brunswick, New Jersey-based company said it had profit of $1.37 per share. Earnings, adjusted for amortization costs and costs related to mergers and acquisitions, came to $1.90 per share.
The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.80 per share.
The world’s biggest maker of health care products posted revenue of $19.65 billion in the period, also exceeding Street forecasts. Five analysts surveyed by Zacks expected $19.28 billion.
Johnson & Johnson expects full-year earnings in the range of $7.25 to $7.30 per share, with revenue in the range of $76.1 billion to $76.5 billion.
Johnson & Johnson shares have climbed 18 per cent since the beginning of the year, while the Standard & Poor’s 500 index has risen 14 per cent.
The stock has increased 16 per cent in the last 12 months.

Return to headline | Return to top
Johnson & Johnson's stock jumps after profit and sales beat, raised outlook

Oct 17, 2017 | MarketWatch

By Tomi Kilgore

Shares of Johnson & Johnson JNJ, +1.09% rallied 1.4% in premarket trade Tuesday, after the drug and consumer products company beat third-quarter earnings expectations and raised its full-year outlook. Net income fell to $3.76 billion, or $1.37 a share, from $4.27 billion, or $1.53 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.90, above the FactSet consensus of $1.80. Revenue rose to $19.65 billion from $17.82 billion, beating the FactSet consensus of $19.29 billion. Pharmaceutical sales increased 15% to $9.7 billion, topping the FactSet consensus of $9.3 billion, while consumer sales growth of 2.9% to $3.4 billion matched expectations. The company raised its 2017 revenue outlook to a range of $76.1 billion to $76.5 billion from $75.8 billion to $76.1 billion and its adjusted EPS outlook to $7.25 to $7.30 from $7.12 to $7.22. The stock has rallied 18.2% year to date through Monday, while the SPDR Health Care Select Sector ETF XLV, -0.44% has climbed 19.0% and the Dow Jones Industrial Average DJIA, +0.37% has advanced 16.2%.

Return to headline | Return to top
Johnson & Johnson beats by $0.10, beats on revenue

Oct 17, 2017 | SeekingAlpha

By Mamta Mayani

Johnson & Johnson (NYSE:JNJ): Q3 EPS of $1.90 beats by $0.10.
Revenue of $19.65B (+10.3% Y/Y) beats by $370M.
Shares +1.99% PM.

Return to headline | Return to top
J&J climbs after earnings beat and higher guidance

Oct 17, 2017 | Financial Times

By David Crow

Johnson & Johnson posted third quarter sales and profits that beat Wall Street expectations and raised its full-year forecasts as it kicked off the earnings season for healthcare sector.
The world’s largest healthcare company by market value posted adjusted earnings per share of $1.90 on sales of $19.7bn thanks to strong growth in drugs sales. The typical analyst had expected EPS of $1.80 and $19.3bn in revenues.
Shares in the group added 1.4 per cent in premarket trading. “Johnson & Johnson accelerated growth in the third quarter.
This is driven by the strong performance of our pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth,” said Alex Gorsky, chairman and chief executive.

The company increased its sales guidance for the full year to a range of $76.1bn and $76.5bn and its adjusted earnings guidance to $7.25-$7.30 per share. It had previously guided in the range of $75.8bn to $76.1bn and $7.12-$7.22 per share

Return to headline | Return to top
Johnson & Johnson Lifts FY17 Forecast As Q3 Results Top Estimates

Oct 17, 2017 | Nasdaq

Drug major Johnson & Johnson (JNJ) on Tuesday lifted its forecast for fiscal 2017 adjusted earnings per share and sales. In its third quarter, net profit declined, despite higher sales. However, both adjusted profit and topline beat analysts' estimates.
In pre-market activity, JNJ shares were gaining 2.2 percent to $139.
The company now expects fiscal 2017 adjusted earnings of $7.25 - $7.30 per share and sales of $76.1 billion to $76.5 billion. Previously, the company expected annual adjusted earnings of $7.12 - $7.22 per share, and sales of $75.8 billion to $76.1 billion.
In its third quarter, net earnings were $3.8 billion, down 12 percent from last year's $4.27 billion. Earnings per share were $1.37, down 10.5 percent from $1.53 last year.
Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.2 billion or $1.90 per share, compared to $4.68 billion or $1.68 per share.
Johnson & Johnson's sales were $19.7 billion, an increase of 10.3 percent from $17.82 billion a year ago. Analysts expected earnings of $1.8 per share on sales of $19.28 billion for the quarter.
Operational sales results increased 9.5 percent and the positive impact of currency was 0.8 percent. Domestic sales increased 9.7 percent.
International sales increased 10.9 percent, reflecting operational growth of 9.3 percent and a positive currency impact of 1.6 percent.
Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide, domestic and international sales each increased 3.8 percent.
Worldwide Consumer sales of $3.4 billion represented an increase of 2.9 percent versus the prior year.
Alex Gorsky, Chairman and Chief Executive Officer, said, "Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth."
Further, the company said it has made a decision not to pursue global approvals of sirukumab for the treatment of moderately to severely active rheumatoid arthritis. In addition, the clinical trial for talacotuzumab, an investigational compound being studied in patients with acute myeloid leukemia, has been discontinued.

Return to headline | Return to top
J&J (JNJ) Beats on Q3 Earnings & Sales, Ups 2017 View

Oct 17, 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.
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 2.18%. Estimates have gone up 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 third quarter earnings - the company reported EPS of $1.90 while our consensus called for EPS of $1.80.
Revenues Beat: Revenues were also above expectations. Johnson & Johnson posted revenues of $19.65 billion, compared to our consensus estimate of $19.28 billion.
Higher sales from new products as well as the positive contribution from recent acquisitions like Actelion pulled up the top line in the quarter.
Key Statistics: Pharmaceutical segment sales rose 15.4% year over year to $9.7 billion, reflecting 14.6% operational growth and 0.8% positive currency impact as sales rose in both the domestic and international markets.
Ups 2017 View: J&J raised its adjusted earnings and sales outlook for the year.
J&J expects 2017 adjusted earnings per share in the range of $7.25 - $7.30 compared with $7.12 - $7.22 expected previously.
The revenue guidance was raised to a range of $76.1 billion to $76.5 billion compared with $75.8 billion to $76.1 billion expected previously.

Stock Price Impact: Shares rose 1.6% in pre-market trading.

Return to headline | Return to top
Pharma business, Actelion buy drive J&J's profit beat

Oct 17, 2017 | Reuters

(Reuters) - Johnson & Johnson (JNJ.N) reported a higher-than-expected quarterly profit, driven by its pharmaceutical business and its recent acquisition of Swiss biotech Actelion and other businesses.
Shares of J&J, part of the Dow Jones Industrial Average .DJI, were up 1.4 percent at $138 in premarket trading.
The company, which makes everything from Band-Aids to blockbuster rheumatoid arthritis drug Remicade, completed the $30 billion acquisition of Actelion in June, giving it access to high-price, high-margin medicines for rare diseases.
J&J also raised its 2017 profit forecast to a range of $7.25 to $7.30 per share from a range of $7.12 to $7.22 per share estimated previously.
Sales in the company’s pharmaceutical business rose 15.4 percent to $9.7 billion in the third quarter, while its total revenue rose 10.3 percent to $19.65 billion.
However, the company’s net earnings fell to $3.76 billion, or $1.37 per share, from $4.27 billion, or $1.53 per share, a year earlier.

Excluding special items, J&J earned $1.90 per share, beating analysts estimates $1.80 per share, according to Thomson Reuters I/B/E/S.

Return to headline | Return to top
Johnson & Johnson raises guidance as earnings beat

Oct 17, 2017 | The Wall Street Journal

By Cara Lombardo

Johnson & Johnson JNJ -0.23% increased its sales and profit guidance for the third quarter in a row as the company’s pharmaceutical unit helped deliver its biggest earnings beat so far this year.
Revenue from the health-care giant’s pharmaceutical unit, its largest, jumped 15%, driven by its $30 billion purchase of a Swiss biotech firm earlier this year and new additions including Darzalex, which treats multiple myeloma, and a cancer therapy. Sales in the company’s consumer segment, which includes Tylenol and Neutrogena beauty products, increased only modestly and slipped 0.5% in the U.S. Medical device sales rose 7%.
J&J now guides for adjusted earnings per share for the year of $7.25 to $7.30, up from $7.12 to $7.22. It also raised its sales outlook to $76.1 billion to $76.5 billion, from $75.8 billion to $76.1 billion.
The New Brunswick, N.J., company, the world’s largest seller of health products and one of the first to report its earnings each quarter, is seen as a bellwether for the industry. The company’s shares rose 1.7% premarket Tuesday.
J&J’s revenue rose 10% to $19.7 billion in its third quarter, topping what analysts polled by Thomson Reuters had expected. The company also beat on its bottom line, posting earnings per share of $1.90 on net income of $5.2 billion. Analysts had expected earnings per share of $1.80 on $4.9 billion.
Chief Executive Alex Gorsky said the company’s pharmaceutical business and its recent purchase of Swiss company Actelion , ALIOY 0.14% in particular, fueled growth. That deal gave the company immediate access to a portfolio of rare disease treatments.
While acquiring new products and building its pipeline, J&J has been halting plans and trimming its reach elsewhere to accommodate expiring patents, price competition and changing consumer needs.
It said Tuesday it will not pursue global approvals of sirukumab for the treatment of rheumatoid arthritis and has discontinued research on talacotuzumab, an investigational compound that could treat acute myeloid leukemia.
Earlier this month, J&J abandoned its insulin pump business in the U.S. and Canada, and pledged to help transition its roughly 90,000 diabetes patients toMedtronic PLC’s pumps instead. Medtronic commands about 65% of the insulin pump market, while analysts estimate J&J held 10%.
Groups representing diabetes patients have said they are extremely concerned that J&J’s decision will limit options and stunt innovation.
J&J is still evaluating options for its other diabetes businesses, including LifeScan Inc., which makes blood-glucose monitors, and OneTouch products.
The company also sold its Codman Neuro division to Integra LifeSciences Holdings Corp.
On an earnings call Tuesday morning, analysts are likely to ask J&J executives whether Hurricane Maria impacted manufacturing operations in Puerto Rico

Return to headline | Return to top
Johnson & Johnson's stock jumps after profit and sales beat, raised outlook

| Morningstar

Shares of Johnson & Johnson (JNJ) rallied 1.4% in premarket trade Tuesday, after the drug and consumer products company beat third-quarter earnings expectations and raised its full-year outlook. Net income fell to $3.76 billion, or $1.37 a share, from $4.27 billion, or $1.53 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.90, above the FactSet consensus of $1.80. Revenue rose to $19.65 billion from $17.82 billion, beating the FactSet consensus of $19.29 billion. Pharmaceutical sales increased 15% to $9.7 billion, topping the FactSet consensus of $9.3 billion, while consumer sales growth of 2.9% to $3.4 billion matched expectations. The company raised its 2017 revenue outlook to a range of $76.1 billion to $76.5 billion from $75.8 billion to $76.1 billion and its adjusted EPS outlook to $7.25 to $7.30 from $7.12 to $7.22. The stock has rallied 18.2% year to date through Monday, while the SPDR Health Care Select Sector ETF (XLV) has climbed 19.0% and the Dow Jones Industrial Average has advanced 16.2%.

Return to headline | Return to top
Johnson & Johnson (JNJ) Tops Q3 EPS by 10c; Raises Outlook

Oct 17, 2017 | Street Insider

Johnson & Johnson (NYSE: JNJ) reported Q3 EPS of $1.90, $0.10 better than the analyst estimate of $1.80. Revenue for the quarter came in at $19.7 billion versus the consensus estimate of $19.28 billion.
GUIDANCE:
Johnson & Johnson raised its FY outlook. The company sees FY2017 EPS of $7.25-$7.30, versus the consensus of $7.18. Johnson & Johnson sees FY2017 revenue of $76.1-76.5 billion, versus the consensus of $75.83 billion.

"Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth," said Alex Gorsky, Chairman and Chief Executive Officer. "Our dedicated colleagues continue to focus on advancing our pipelines to bring innovative solutions to patients and consumers around the globe."

Return to headline | Return to top
Johnson & Johnson discards two hoped-for billion-dollar drugs (UPDATE -1)

Oct 17, 2017 | Market Watch

By Emma Court

Johnson & Johnson has discarded two drugs that the pharmaceutical company said just months ago had blockbuster potential—indicating they could bring in at least a billion dollars in annual revenue.
The company JNJ, +1.53% made the announcement on Tuesday in a strong third-quarter earnings report, including a large pharmaceutical sales increase.
Johnson & Johnson said little more about the decision other than the names of the drugs and their hoped-for disease areas, rheumatoid arthritis and acute myeloid leukemia.
The discontinuation of the two drugs, sirukumab and talacotuzumab, comes at a time when many large pharmaceutical companies are struggling with new competition for large, established therapies and looking for new sources of revenue.
Revenue for the company’s blockbuster Remicade, which treats rheumatoid arthritis and other conditions, has been declining, including a nearly 8% global decline in the latest quarter, compared with the year-earlier period. And while revenue for new cancer drugs like Imbruvica and Darzalex increased significantly in the latest quarter, their share of total revenue is still relatively small.
In May, Johnson & Johnson made a high-profile announcement of 11 “blockbuster potential” drugs that it planned to launch between 2017 and 2021. The company said then that it expected sirukumab would be approved and launched this year and that it planned to file for approval of talacotuzumab by 2021.
The company had a “strong line-up of innovative products expected to launch or file over the next five years,” Chief Executive Alex Gorsky said then.
But just months after that announcement, pharmaceutical company GlaxoSmithKline ended its sirukumab partnership with Johnson & Johnson as one of “a number of choices to prioritize the strongest assets and markets in its portfolio and move capital and resources away from those that offer more limited opportunities.”
Then, last month, the Food and Drug Administration failed to approve sirukumab, and asked for more clinical trial data to examine the drug’s safety—which typically extends a drug’s approval timeline by years.
That leaves nine of the May list of blockbuster drugs. Psoriasis drug guselkumab was approved by the FDA in July, and Johnson & Johnson said on Tuesday that it has filed for approval for prostate cancer drug apalutamide.
Others on the list include depression drug esketamine, prostate cancer drug niraparib, myelofibrosis drug imetelstat, respiratory syncytial virus infection lumicitabine, influenza A drug pimodivir—for which mid-stage clinical trial results were released over the summer—and major depressive disorder drug JNJ-7922.
Johnson & Johnson shares have surged 3% over the last three months, compared with a 4% rise in the S&P 500 SPX, -0.01% and a 6% gain by the Dow Jones Industrial Average DJIA, +0.10% Company shares rose 1.1% in premarket trade Tuesday after its third-quarter earnings report.

Return to headline | Return to top
Johnson & Johnson has discarded two drugs that the pharmaceutical company said just months ago had blockbuster potential—indicating they could bring in at least a billion dollars in annual revenue. The company JNJ, -0.23% made the announcement on Tuesda

Oct 17, 2017 | Mass Device

By Brad Perriello

Although third-quarter profits for Johnson & Johnson (NYSE:JNJ) were off nearly -13%, the healthcare giant still managed to top the consensus estimate for sales and earnings per share on a top-line gain of more than 10%.
New Brunswick, N.J.-based J&J posted profits of $3.76 billion, or $1.37 per share, on sales of $19.65 billion for the three months ended Sept. 30, for a bottom-line slide of -11.9% on sales growth of 10.3%.
Adjusted to exclude one-time items, earnings per share were $1.90, a full dime ahead of the consensus on Wall Street, where analysts were looking for sales of $19.28 billion. That sent JNJ shares up 2.2% to $139.00 apiece today in pre-market trading.
“Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our pharmaceutical business, and augmented by Actelion (ALIOF) and other recent acquisitions across the enterprise that will continue to fuel growth,” chairman & CEO Alex Gorsky said in prepared remarks. “Our dedicated colleagues continue to focus on advancing our pipelines to bring innovative solutions to patients and consumers around the globe.”
Johnson & Johnson boosted its outlook for the rest of the year, saying it now expects to post adjusted EPS of $7.25 to $7.30, up from$7.12 to $7.22 previously, on sales of $76.1 billion to $76.5 billion (up from $75.4 billion to $76.1 billion previously).
Medical device sales up 7%
Sales for J&J’s medical device division rose 7.1% to $6.60 billion during the quarter, paced by 9.6% growth to $3.41 billion overseas and 4.6% growth to $3.19 billion domestically. Consumer revenues rose 2.9% to $3.36 billion and pharmaceuticals revenues jumped 15.4% to$9.70 billion, the company said.

Within the medtech business, the vision care segment posted the most robust growth, up 47.6% to $1.09 billion compared with Q3 2016, followed by cardiovascular sales growth of 12.2% to $506 million. Surgical sales rose 2.7% to $2.35 billion; Johnson & Johnson’s orthopedics business was flat at $2.25 billion. The diabetes business reported a -5.2% drop to $405 million.

Return to headline | Return to top
Johnson & Johnson (JNJ) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

| American Banking and Market News

Johnson & Johnson (NYSE:JNJ) announced its earnings results on Tuesday. The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.10, Bloomberg Earnings reports.
Johnson & Johnson had a net margin of 22.52% and a return on equity of 26.76%. The firm had revenue of $19.65 billion during the quarter, compared to the consensus estimate of $19.29 billion. During the same quarter in the previous year, the company posted $1.68 EPS. The firm’s revenue for the quarter was up 10.3% on a year-over-year basis.
Johnson & Johnson (JNJ) opened at 136.12 on Tuesday. The firm has a 50-day moving average price of $132.57 and a 200-day moving average price of $130.27. The stock has a market cap of $365.35 billion, a PE ratio of 23.03 and a beta of 0.78. Johnson & Johnson has a 12-month low of $109.32 and a 12-month high of $137.52.
A number of research analysts have recently commented on JNJ shares. BidaskClub downgraded shares of Johnson & Johnson from a “buy” rating to a “hold” rating in a research note on Wednesday, July 12th. Atlantic Securities downgraded shares of Johnson & Johnson from a “neutral” rating to an “underweight” rating and set a $113.00 price objective for the company. in a research note on Friday, July 21st. Jefferies Group LLC reaffirmed a “hold” rating and set a $145.00 price objective (up previously from $140.00) on shares of Johnson & Johnson in a research note on Friday, July 14th. Citigroup Inc. started coverage on shares of Johnson & Johnson in a research note on Monday, September 25th. They set a “neutral” rating and a $140.00 price objective for the company.
Finally, Morgan Stanley upped their price objective on shares of Johnson & Johnson from $135.00 to $140.00 and gave the company an “overweight” rating in a research note on Wednesday, July 5th. Five research analysts have rated the stock with a sell rating, eight have assigned a hold rating and ten have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $135.98.
In other news, VP Dominic J. Caruso sold 82,591 shares of the stock in a transaction dated Thursday, July 20th. The stock was sold at an average price of $136.72, for a total transaction of $11,291,841.52. Following the transaction, the vice president now owns 226,693 shares of the company’s stock, valued at approximately $30,993,466.96. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Paulus Stoffels sold 102,692 shares of the stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $133.14, for a total value of $13,672,412.88. Following the transaction, the vice president now directly owns 230,342 shares in the company, valued at approximately $30,667,733.88. The disclosure for this sale can be found here. Corporate insiders own 0.19% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Harding Loevner LP acquired a new position in shares of Johnson & Johnson during the 2nd quarter valued at about $106,000. Mitsubishi UFJ Securities Holdings Co. Ltd. increased its holdings in shares of Johnson & Johnson by 29.9% during the 2nd quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 870 shares of the company’s stock valued at $115,000 after acquiring an additional 200 shares during the last quarter. Lenox Wealth Advisors Inc. increased its holdings in shares of Johnson & Johnson by 0.6% during the 2nd quarter. Lenox Wealth Advisors Inc. now owns 876 shares of the company’s stock valued at $116,000 after acquiring an additional 5 shares during the last quarter. IHT Wealth Management LLC increased its holdings in shares of Johnson & Johnson by 46.4% during the 2nd quarter. IHT Wealth
Management LLC now owns 10,942 shares of the company’s stock valued at $122,000 after acquiring an additional 3,467 shares during the last quarter. Finally, Mountain Capital Investment Advisors Inc acquired a new position in shares of Johnson & Johnson during the 2nd quarter valued at about $124,000. 65.90% of the stock is currently owned by institutional investors and hedge funds.

Return to headline | Return to top
J&J Fends Off Competition for Top Drug, Raises 2017 Forecast (UPDATE -1)

Oct 17, 2017 | Bloomberg

By Jared Hopkins

Johnson & Johnson’s top-selling biotechnology drug Remicade fended off competitors in the third quarter, amid accusations by a rival drugmaker that it’s using unfair tactics to block patients from getting alternative products.
Remicade is J&J’s biggest product, and the New Brunswick, New Jersey-based drugmaker has seen limited impact on the blockbuster despite losing patent protection and as cheaper “biosimilar” copies of the complex drug have become available.
While the health-care conglomerate has major medical device and consumer divisions, drugs have been a recent standout. That’s helped J&J outpace many of its large pharmaceutical rivals this year -- the company is the second-best performer so far in 2017 on the nine-member Standard and Poor’s 500 Pharmaceuticals Index.
J&J shares rose 1.5 percent to $138.20 before the markets opened in New York.
In September, J&J was sued by Pfizer Inc., which accused it of thwarting competition for Remicade using “exclusionary contracts” with insurers and hospitals “to ensure that biosimilars would never become viable competitors.” Pfizer’s Inflectra, a biosimilar version of Remicade, became available late last year. Merck & Co. and Samsung Bioepis Co. co-market Renflexis, another competitor.
Third-quarter sales of Remicade were $1.64 billion, J&J said in a statement Tuesday, down 7.6 percent but beating the $1.56 billion predicted by analysts.
The company raised its full-year forecast for adjusted earnings to $7.25 to $7.30 a share, up from $7.12 to $7.22. Sales will be $76.1 billion to $76.5 billion, J&J said, up from the $75.8 billion to $76.1 billion it predicted in July.
Third-quarter earnings excluding some items were $1.90 a share, compared with the $1.80 average of analysts’ estimates. Sales in the quarter were $19.7 billion, compared to the $19.29 billion estimated by analysts.

Return to headline | Return to top
Dow Stock J&J Pops After Topping Sales, Profit Expectations

Oct 17, 2017 | Investor’s Business Daily

By Alison Gatlin

Dow component Johnson & Johnson (JNJ) early Tuesday reported adjusted income of $1.90 per share on sales of $19.7 billion for the third quarter compared with $1.68 and $17.8 billion, respectively, in the year-earlier period.
Polled by Zacks Investment Research called for adjusted profit of $1.80 a share on revenue of $19.28 billion.
In premarket trading on the stock market today, J&J stock lifted 1.3%, near 137.80.

Investors will likely tune in to the conference call to see the impact hurricanes in Texas, Florida and Puerto Rico had on sales and manufacturing. J&J is among a number of drugmakers that have facilities in Puerto Rico.

Return to headline | Return to top
New cancer drugs help J&J top profit estimates

Oct 17, 2017 | Reuters

Shares of J&J, part of the Dow Jones Industrial Average, were up 1.3 percent in premarket trading on Tuesday.
Higher demand for its blood cancer drugs, Darzalex and Imbruvica, and the addition of high-margin treatments for rare diseases from its $30 billion acquisition of Actelion are expected to boost the company’s earnings in the coming quarters.
The company’s pharmaceutical business posted a 15.4 percent rise in sales in the third quarter.
“We are convinced that the pharma pipeline remains robust and more meaningful contributions will kick in beyond 2017,” Joshua Jennings from Cowen & Co wrote in a client note.
However, sales of J&J’s rheumatoid arthritis drug, Remicade, slipped in the latest quarter as the company faces rising threats from copycat versions of the blockbuster drug.
The company, which makes everything from Band-Aids to Neutrogena beauty products, said its results included the impact of the first full quarter of the acquisition of Actelion, which added 7.9 percent to worldwide operational sales growth.
J&J raised its 2017 profit forecast to a range of $7.25 to $7.30 per share from a range of $7.12 to $7.22 per share estimated previously. Revenue forecast is expected to range between $76.1 billion and $76.5 billion, compared with its earlier outlook of $75.8 billion of $76.1 billion.
Total revenue rose 10.3 percent to $19.65 billion.
However, the company’s net earnings fell to $3.76 billion, or $1.37 per share, in the quarter from $4.27 billion, or $1.53 per share, a year earlier.
Excluding special items, J&J earned $1.90 per share.

Analysts on average were expecting an adjusted profit of $1.80 per share on revenue of $19.28 billion for the latest quarter, according to Thomson Reuters I/B/E/S.

Return to headline | Return to top
Johnson & Johnson beats earnings and revenue forecasts

| Capital.com

By James Hester

Johnson & Johnson shares looked set for a positive start today after the company reported strong financial results for the third quarter and raised its guidance for the full year.
The pharmaceuticals and consumer products giant beat third-quarter earnings and revenue expectations as its drugs sales surged by around 15%.
Drugs sales soar
Johnson´s prescription drugs sales soared to $9.7bn on the back of strong contributions from the likes of its blood cancer drug Imbruvica and cancer treatment Darzalex.
Meanwhile, sales of its consumer health products increased 2.9%, to $3.4bn, while the sales of contact lenses and other medical devices rose 7.1%, to $6.6bn.
Along with organic growth, overall revenues were also driven higher by recent acquisitions, such as that of global biopharmaceutical company Actelion.
Increased spending
Despite the strong surge in revenues, which saw earnings exceed market expectations, profits were down by 12% on the year-ago period due to increased spending.
Quarterly earnings dipped to $3.8bn versus $4.3bn during the same period of 2016.

At the same time, the robust sales growth also saw the company increase its 2017 revenue guidance to a range of $76.1bn to $76.5bn, up from $75.8bn to $76.1bn.

Return to headline | Return to top
J&J jumps after pharma sales help to beat third-qtr estimates

Oct 17, 2017 | The Pharma Letter

Johnson & Johnson (NYSE: JNJ), the world’s largest healthcare company, looked set to open trading on Tuesday around 1% up on the previous close, after its third-quarter financial results exceeded the expectations of analysts.
The US company posted adjusted earnings per share (EPS) of $1.90 on sales of $19.7 billion, where Wall Street analysts had predicted EPS of $1.80 and revenue of $19.3 billion.
The sales figure was a 10.3% increase on the total from the same period in 2016, while net EPS for the third quarter of 2017 were $3.8 billion and $1.37, respectively.
First full quarter with Actelion sales
Alex Gorsky, chairman and chief executive of J&J, said: “J&J accelerated growth in the third quarter.
“This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth.
“Our dedicated colleagues continue to focus on advancing our pipelines to bring innovative solutions to patients and consumers around the globe.”
The company increased its sales guidance for full-year 2017 to a range of $76.1 billion to $76.5 billion from the previous $75.8bn to $76.1bn.
Adjusted earnings guidance for the year has been increased from $7.12 to $7.22, to $7.25 to $7.30 per share.
Worldwide pharmaceutical sales of $9.7 billion represented an increase of 15.4% versus the third quarter of 2016, with an operational increase of 14.6% and a positive impact from currency of 0.8%.
These sales included the impact of the first full-quarter of the acquisition of Swiss biotech company Actelion, which contributed 7.9%, to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide pharma sales increased 6.7%.
Product sales
Once again J&J’s best-selling pharma product was the inflammatory diseases agent Remicade (infliximab), despite the $1.65 billion raised by the drug being 7.6% down on a year ago as biosimilar competition starts to kick in.
Stelara (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, raised $1.12 billion, up 38.1%, and Zytiga (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, earned the company $669 million, a 14.9% rise on the year before.
Invega Sustenna/Xeplion/Trinza (paliperidone palmitate), a long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in adults, brought in $643 million, a rise of 15.6%, while sales were up by 46.7% at $512 million for Imbruvica (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer.

Sales of the inflammatory diseases drug Simponi (golimumab) slipped by 1% to $476 million, while for multiple myeloma treatment Darzalex (daratumumab) they leapt 94.5% to $317 million.

Return to headline | Return to top
Johnson & Johnson (JNJ): Will The Growth Last?

Oct 17, 2017 | Simply Wall Street

By Frank Brewer

Johnson & Johnson (NYSE:JNJ) is predicted to grow its earnings per share by a robust double-digit 28.15% over the next three years. At a current EPS of $6.025, this growth rate means shareholders can expect an impending EPS of $7.721. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past.
What can we expect from Johnson & Johnson (NYSE:JNJ) in the future?
JNJ is covered by 22 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $6.025 to $7.721 in a few years. This indicates a relatively solid earnings per share growth rate of 28.15% over the next few years, which is an optimistic outlook in the near term. In the same period we will see the revenue grow from $72,531M to $84,550M and profits (net income) are predicted to escalate from $16,335M to $20,934M in the next couple of years, roughly growing 1.3x. Margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. JNJ’s earnings growth in the last five years was a unexciting 7.77%, indicating a relatively more upbeat attitude towards the company in the upcoming year. This belief may be supported by turnaround initiatives implemented in the past or previous investments coming to fruition.
Conclusion
However, in order to determine whether this bullish sentiment is yet to be accounted for by the market, we also need to see if it is undervalued. As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price“. Is JNJ an undervalued gem? Let’s find out in this free analysis report. If you are not interested in JNJ anymore, you can use our free platform to see my list of over 150 other stocks with a high growth potential.

Return to headline | Return to top
Johnson & Johnson ups full year guidance after third quarter beats market expectations

| Proactive Investors

Johnson & Johnson (NYSE:JNJ) has upped both its sales and profit guidance for the full year after the world’s largest healthcare company reported market beating third quarter numbers.
In premarket trade, its shares were up 1.27% at US$137.85.
J&J is now guiding for full year adjusted earnings per share to come in at US$7.25 to US$7.30, up from US$7.12 to US$7.22. It also increased its sales outlook to US$76.1bn US$76.5bn, from US$75.8bn to US$76.1bn.
In the third quarter, revenue from its largest unit, the pharmaceutical arm, surged 15%, boosted by the US$30bn acquisition of a Swiss biotech firm earlier this year and new additions including Darzalex, which treats multiple myeloma, and a cancer therapy.
Sales in the company's consumer segment, which includes Tylenol and Neutrogena beauty products, managed only a slight rise, and fell 0.5% in the US.
Its medical device sales managed to post a 7.1% hike to US$6.6bn for the quarter, the company said in a statement.
In the quarter, its revenue rose 10% to US$19.7bn, topping market expectations. Earnings per share of US$1.90 on net income of US$5.2bn also soundly beat market hopes for US $1.80 per share on US$4.9bn.
Chief Executive Alex Gorsky attributed the growth to J&J’s pharmaceutical business and its recent purchase of Actelion, which gave the company immediate access to a portfolio of rare disease treatments.
The company said in a statement that it will not seek global approvals of sirukumab for the treatment of rheumatoid arthritis and has discontinued research on talacotuzumab, an investigational compound that could treat acute myeloid leukemia.

Earlier this month, J&J abandoned its insulin pump business in the U.S. and Canada, and it is still evaluating options for its other diabetes businesses, including LifeScan Inc., which makes blood-glucose monitors, and OneTouch products.

Return to headline | Return to top
Johnson & Johnson Pharmaceutical, Domestic Sales Fuel Growth

| 24/7 Wall Street

By Chris Lange

Johnson & Johnson (NYSE: JNJ) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company said that it had $1.90 in earnings per share (EPS) and $19.7 billion in revenue, which compares with consensus estimates from Thomson Reuters of $1.80 in EPS and revenue of $19.28 billion. In the same period of last year, it posted EPS of $1.68 and $17.82 billion in revenue.
Domestic sales increased 9.7%. International sales increased 10.9%, reflecting operational growth of 9.3% and a positive currency impact of 1.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide, domestic and international sales each increased 3.8%.
In terms of its segments, the company reported: Worldwide Consumer revenues of $3.4 billion increased 2.9% over the prior year, consisting of an operational increase of 1.6% and a positive impact from currency of 1.3%. Worldwide Pharmaceutical revenues of $9.7 billion represented an increase of 15.4% from the prior year, with an operational increase of 14.6% and a positive impact from currency of 0.8%. Worldwide Medical Devices revenues of $6.6 billion increased by 7.1% compared to last year, consisting of an operational increase of 6.6% and a positive currency impact of 0.5%.
As for the full year outlook, Johnson & Johnson increased both its EPS forecast to $7.25 to $7.30 and sales guidance to $76.1 billion to $76.5 billion. The consensus estimates call for $7.18 in EPS and $75.83 billion in revenue.
Alex Gorsky, board chair and CEO, commented:
Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth. Our dedicated colleagues continue to focus on advancing our pipelines to bring innovative solutions to patients and consumers around the globe.

Shares of Johnson & Johnson traded up 1% early Tuesday at $137.52, with a consensus analyst price target of $138.80 and a 52-week trading range of $109.32 to $137.52.

Return to headline | Return to top
Johnson & Johnson's third-quarter prescription drug sales rise 15.4 percent, lifted by Actelion purchase

| First Word Pharma

By Joe Barber

Johnson & Johnson said Tuesday that third-quarter sales of prescription drugs climbed 15.4 percent year-over-year to $9.7 billion, topping analyst estimates of $9.3 billion, boosted by the first full quarter of revenue from the acquisition of Actelion. The company's overall sales increased 10.3 percent to $19.7 billion, besting forecasts of $19.3 billion, as profit slipped 11.9 percent to $3.8 billion, hit by amortisation expenses and charges totalling $1.4 billion.

CEO Alex Gorsky commented "Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our pharmaceutical business, and augmented by Actelion." For the full year, the company said it now expects sales in the range of $76.1 billion to $76.5 billion, lifted from earlier guidance of $75.8 billion to $76.1 billion. Meanwhile, annual earnings per share are estimated to be between $7.25 and $7.30, increased from a prior forecast of $7.12 to $7.22.

Johnson & Johnson also announced Tuesday that it has decided against pursuing global approvals of sirukumab for the treatment of moderately to severely active rheumatoid arthritis. In addition, a clinical trial for talacotuzumab, an investigational compound being studied in patients with acute myeloid leukaemia, has been discontinued.

Return to headline | Return to top
Johnson & Johnson (JNJ) Has Risen To A New High On Strong Q3 Earnings

| Nasdaq

RTTNews.com) - Johnson & Johnson ( JNJ ) reported third quarter EPS of $1.90 Tuesday morning, up from $1.68 last year. The consensus estimate was for EPS of $1.80.
The company now expects full year 2017 adjusted EPS of $7.25 to $7.30 up from prior guidance of $7.12 to $7.22. Street expectations are for EPS of $7.18.

Johnson & Johnson gapped open higher Tuesday and is now up 2.57 at $138.69 in early trade. The stock has climbed past resistance and has set a new high for the year.

Return to headline | Return to top
Johnson & Johnson tops Street 3Q forecasts, hikes forecast (UPDATE -3)

Oct 17, 2017 | Associated Press

By Linda Johnson

Higher spending across the board drove Johnson & Johnson’s third-quarter profit down 12 percent, despite a big sales jump fueled by recent acquisitions, hot new cancer drugs and strong sales of other key medicines.
However, the health care giant easily topped Wall Street expectations. With momentum in product sales across all three business segments, the Band-Aid maker boosted its financial forecast for the third time this year.
Shares rose 2.2 percent, or $3.03, to $139.14 in late-morning trading.
“This was a strong quarter for Johnson & Johnson,” Edward Jones analyst Ashtyn Evans wrote Tuesday to investors, adding that its strong balance sheet should enable more product acquisitions.
J&J’s biggest ever, $30 billion to buy Swiss biopharmaceutical company Actelion in June, added $670 million to the quarter’s sales of Actelion’s drugs for dangerously high blood pressure in the lungs. That also gave J&J a sixth disease focus area, along with drugs for cancer, infectious diseases and immune, neurological and cardiovascular disorders.
Sales of prescription medicines soared 15.4 percent to $9.7 billion, boosted by blood cancer drug Imbruvica, Darzalex for multiple myeloma, blood thinner Xarelto and immune disorder drug Stelara. Revenue from some older drugs declined amid pressure for lower prices and increased competition.
But J&J said it’s scrapped two experimental drugs it recently touted as future blockbusters. As expected, J&J threw in the towel on rheumatoid arthritis drug sirukumab due to disappointing testing results, including nearly three dozen patient deaths, and dim prospects versus already-approved rivals. J&J also stopped its late-stage patient study of talacotuzumab in leukemia, due to a poor risk-benefit balance.
Sales of consumer health products such as Tylenol and Neutrogena skin care rose 2.9 percent, to $3.4 billion, and sales of Acuvue contact lenses and other medical devices jumped 7.1 percent, to $6.6 billion. Device sales were boosted $291 million by this year’s acquisition of Abbott Medical Optics, which sells products for Lasik and eye cataract surgery.
J&J said the hurricanes that recently hit U.S. coastal areas and Puerto Rico, where it has six factories, forced surgery cancellations for days, reducing revenue minimally, but haven’t disrupted product supplies. However, the Puerto Rico factories are only partially running, on generators.
The New Brunswick, New Jersey, company reported total sales of $19.7 billion, up from $17.8 billion in 2016′s third quarter. That exceeded analyst forecasts for $19.28 billion.
J&J reported net income of $3.76 billion, or $1.37 per share, down from $4.27 billion, or $1.53 per share, a year earlier. Adjusted for one-time costs, the company posted earnings of $1.90 per share, topping analysts’ forecasts for $1.80 per share.
Johnson & Johnson now expects full-year earnings ranging from $7.25 to $7.30 per share, on revenue of $76.1 billion to $76.5 billion. In August, it forecast full-year earnings of $7.12 to $7.22 per share and revenue of $75.8 billion to $76.1 billion.

Wall Street has been projecting full-year earnings of $7.18 per share, according to a poll by FactSet.

Return to headline | Return to top
Johnson & Johnson (NYSE:JNJ) Achieve New Highs

| Aiken Advocate

Shares of Johnson & Johnson (NYSE:JNJ) have seen a consistent move higher lately. The stock has reached the $138.71 mark after a recent check. This move has generated increased interest from both analysts and investors.Since the start of the calendar year, Johnson & Johnson (NYSE:JNJ)’s stock has changed 18.15%. Over the last five trading sessions, the stock has moved 2.00%. For the past month, Johnson & Johnson’s stock has been 1.24%, 1.23% for the last quarter, 11.74% for the past six months and 15.79% for the past 52 weeks.
Based on current stock levels, Johnson & Johnson shares are trading 0.87% off of the 50-day high and 7.49% away from the 50-day low.

Johnson & Johnson (NYSE:JNJ)’s EPS growth this year is 8.30% and the trailing 12-month EPS is $5.91. Covering sell-side analysts are estimating company growth for next year to be 7.84%. On a consensus basis, analysts have given a recommendation of 2.50 on company shares.

Return to headline | Return to top
Johnson and Johnson raises full year targets after strong third quarter

| Digital Look

By Iain Gilbert

Healthcare giant Johnson and Johnson posted higher than expected profits for the three months to 30 September thanks to increased demand for its new cancer drugs and the additional revenue afforded to the group from its June acquisition of Swiss biotech company Actelion.
Strong sales from its cancer drugs, Darzalex and Inbruvica, boosted Johnson and Johnson's pharmaceutical sales 15.4% in the quarter, while the Actelion business added 7.9% to the group's worldwide operational sales growth.
Johnson and Johnson raised its full-year earnings per share forecast from $7.12 -7.22 per share to $7.25-7.30 as a result of the strong quarter and said on Tuesday that 2017 revenues were likely to fall between $76.1bn and $76.5bn.
That compared to a previous guidance range for between $75.8bn to $76.1bn in sales.
Total revenue increased 10.3% year-on-year to $19.65bn as Johnson and Johnson also reported higher sales across its consumer and medical device divisions.
However, despite the positive growth, the company's net earnings dropped to $3.76bn in the quarter, down from the $4.27bn it brought in twelve months earlier.
Nonetheless, adjusted for extraordinary items EPS printed at $1.90, easily surpassing analyst forecasts for $1.80.
"Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth," said Alex Gorsky, chairman and chief executive officer.
After a 1.20% gain in pre-market trading, shares in the New Jersey-based firm were up 1.39% to $137.92 each as of 1430 BST.

Return to headline | Return to top
UnitedHealth and Johnson & Johnson Lead Bruised Healthcare Sector to Gains

| The Street

By Keris Alison Lahiff

Earnings beats from UnitedHealth Group Inc. (UNH - Get Report) and Johnson & Johnson (JNJ - Get Report) led the healthcare sector to recover from a days-long presidential beating.
The sector has had a rough few sessions after President Donald Trump cut off subsidies to insurance companies as a way to undermine Obamacare and then railed against drugmakers for "getting away with murder." Trump and congressional Republicans have worked to repeal the Affordable Care Act first through legislation, a process that failed to deliver the votes, and now by executive order.
Uncertainty for the sector led to recent losses. From Thursday, Oct. 12 to Monday, Oct. 16, the Health Care SPDR ETF (XLV - Get Report) declined by 0.8% and the iShares NASDAQ Biotechnology Index ETF (IBB) fell 0.6%.
However, a solid quarter for UnitedHealth and Johnson & Johnson delivered gains for industry peers. UnitedHealth reported a 26.3% increase in net earnings for its third quarter, while adjusted earnings of $2.66 a share beat estimates by a dime. Overall revenue increased nearly 9%, driven by an 8.4% gain in its pharmacy benefit management unit.
UnitedHealth surged more than 5% and was on track to close at a new record with its best price gain since going public in 1984.
Meanwhile, Johnson & Johnson gained 2% after beating earnings estimates and raising its full-year profit guidance. Pharmaceuticals revenue increased 15% over its recent quarter, while medical device sales in the U.S. rose 7%.

The two were the best performers on the Dow Jones Industrial Average on Tuesday, Oct. 17. Other health stocks on the rise included AbbVie Inc. (ABBV - Get Report) , Celgene Corp. (CELG - Get Report) , Bristol-Myers Squibb Co. (BMY - Get Report) and Biogen Inc. (BIIB - Get Report) . The SPDR ETF increased 1%.

Return to headline | Return to top
J&J: Strong Earnings Is the Best Medicine

| Barron’s

By Johanna Bennet

Shares of Johnson & Johnson (JNJ) are climbing after the world’s largest healthcare conglomerate apparently delivered the good with its third quarter financial results.
Per-share profit beat expectations, and the company lifted its full-year forecast. That beat was led by J&J’s pharmaceutical division, or more specifically strong sales of its cancer drugs, and the $30 billion purchase of the Swiss drug maker Actelion.
As the Wall Street Journal reports:
Revenue from the health-care giant’s pharmaceutical unit, its largest, jumped 15%, driven by its $30 billion purchase of a Swiss biotech firm earlier this year and new additions including Darzalex, which treats multiple myeloma, and a cancer therapy. Sales in the company’s consumer segment, which includes Tylenol and Neutrogena beauty products, increased only modestly and slipped 0.5% in the U.S. Medical device sales rose 7%.
J&J now guides for adjusted earnings per share for the year of $7.25 to $7.30, up from $7.12 to $7.22. It also raised its sales outlook to $76.1 billion to $76.5 billion, from $75.8 billion to $76.1 billion.
Analysts have offered up high hopes for J&J’s pharmaceutical division. Last week, Jefferies shrugged off critics who claimed the stock was too expensive, arguing that an undervalued pharmaceutical business will drive sales and EPS beats for the company next year. And Credit Suisse’s Vamil Divan echoed a similar sentiment, though he also warned of some unknowns heading into today’s earnings report, namely the impact of recent hurricanes.
Today, Cowen analyst Joshua Jennings says J&J’s “pharma acceleration story is off to a solid start.”
Investor focus on the Pharma franchise's ability to rebound from the 1H'17 slowdown should drive positive investor sentiment as the Pharma unit exceeded expectations on both a reported and operational basis (ex-acquisitions and divestitures). Actelion along with guselkumab (recent FDA approval) and other line extensions should continue the 2H acceleration. We are convinced that the Pharma pipeline remains robust and more meaningful contributions will kick in beyond 2017. Meanwhile, both the Consumer and Medical Device franchises are improving and will face easing comps in 2018. On the margin front, JNJ experienced 80bps of pre-tax margin expansion which contributed to the $0.10 EPS beat. The top and bottom line guidance revisions will clearly be viewed positively.
With the 2H'17 step up fully in play, we believe investors will gain increased conviction in the merits of the Actelion add and the 2018 organic re-acceleration story. We are optimistic that the Consumer and Medical Device franchises can recapture a MSD growth profile and that the Pharma pipeline combined with the recent business development initiative will bolster the unit in 2018. We remain confident that the core organic growth trajectory can return to north of 5% and the earnings growth trajectory is well positioned to move to the higher single digits in 2018 and beyond; thus we remain at Outperform.
Barron’s has been a fan of J&J for some time. It was back in April when my colleague Ben Levisohn said that the selloff in J&J shares that followed the healthcare conglomerate’s first quarter revenue miss was a buying opportunity, citing a valuation that had fallen below the five-year average.

At $138.66, shares of J&J are up almost 1.9% in recent market action.

Return to headline | Return to top
J&J’s profit beat estimates thanks to new cancer drugs

| Irish Times

Pharma giant Johnson & Johnson reported a higher-than-expected quarterly profit and raised its full-year forecast, driven by strong demand for its new cancer drugs and gains from its acquisition of Swiss biotech Actelion.
Shares of J&J, part of the Dow Jones Industrial Average , were up 1.6 per cent at $138.3 in premarket trading on Tuesday.
Higher sales of cancer drugs Darzalex and Imbruvica helped the company post a 15.4 per cent rise in pharmaceutical sales in the third quarter.
The company, which makes everything from Band-Aids to blockbuster rheumatoid arthritis drug Remicade, said its results included the impact of the first full quarter of the acquisition of Actelion, which added 7.9 percent to worldwide operational sales growth.
The company completed the $30 billion acquisition of Actelion in June, giving it access to high-price, high-margin treatments for rare diseases.
J&J raised its 2017 profit forecast to a range of $7.25 to $7.30 per share from a range of $7.12 to $7.22 per share estimated previously. Revenue forecast is expected to range between $76.1 billion and $76.5 billion, compared with its earlier outlook of $75.8 billion of $76.1 billion.
Total revenue rose 10.3 per cent to $19.65 billion as the company’s other businesses also performed well.
However, the company’s net earnings fell to $3.76 billion, or $1.37 per share, in the quarter from $4.27 billion, or $1.53 per share, a year earlier.

Excluding special items, J&J earned $1.90 per share.

Return to headline | Return to top
Robust Drug Sales Lift Johnson & Johnson's 3rd Quarter

| MorningStar

Johnson & Johnson (JNJ) reported third-quarter results that exceeded both our and consensus expectations, but we don’t expect any major changes to our fair value estimate and shares continue to look slightly overvalued. Despite strong gains in the drug group, both the consumer and device divisions only gained 1% operationally. The weakness in consumer and devices suggests some weakening of the company’s moat, especially in branding power for the baby and oral care lines.
Nevertheless, the majority of the remaining business lines are performing well and we still view the company’s wide moat as intact.
Morningstar.com offers coverage of 950 stocks, 1,150 mutual funds, and 300 ETFs, plus market news, economic analysis, portfolio-planning insights, and investment commentary.
While the drug group posted solid 7% operational growth (15% including acquisitions), we expect headwinds will emerge in 2018. Immunology drug Remicade is facing two biosimilars in the U.S. and despite a successful bundling and pricing strategy by J&J, we expect aggressive price discounts by the biosimilars will lead to over a 15% decline in Remicade sales in 2018. Additionally, generic competition to cancer drug Zytiga and HIV drug Prezista will likely begin in 2018, and combined with other generic competition, this should lead to a loss of over $10 billion of current sales over the next five years. However, we expect these losses will be offset by continued strong growth from cancer drugs Darzalex (up 92% in the quarter) and Imbruvica (up 45%) along with new pipeline drugs. While these new drugs will mitigate generic pressures, we expect the drug group’s growth will moderate from its current level.
On the consumer and device side, growth is stagnating. The consumer group is facing increased pressure from online distribution. We expect the increased investment in the consumer brands will help the segment to achieve 3% annual growth by 2018. In devices, diabetes weakness continues and we expect a divestment of this unit in 2018. Overall restructuring efforts across the device group and new product launches should drive growth toward 3% annually by 2018.

Return to headline | Return to top
J&J Has Actually Earned Its Record Stock Price

| Bloomberg Gadfly

By Max Nisen

Johnson & Johnson has been flirting with share-price records throughout 2017.
It hit a new one Tuesday after it reported third-quarter earnings results that beat Wall Street sales and profit expectations. J&J raised its full-year earnings outlook and reported growth in all three of its business lines. Even the news it was spiking two prominent drug programs wasn't enough to derail its blue-chip momentum.
At some point, J&J's aging blockbuster inflammation drug Remicade will face serious U.S. competition. But, whether due to what Pfizer Inc. says are anti-competitive practices or not, the drug has been remarkably resilient. Sales fell just 1.3 percent in the U.S. from a year earlier, flattering solid growth in total drug sales.
Pharma revenue grew by 6.7 percent from a year ago, excluding divestitures and acquisitions, most notably the nearly $30 billion purchase of Actelion Ltd. earlier this year. J&J's other medicines -- most notably its newer cancer drugs and inflammation drug Stelara -- are growing so rapidly that it should be able to weather any hit Remicade eventually takes.
That growth makes it easier for J&J to cut programs that aren't working, to its long-term benefit. The company decided to no longer seek FDA approval for an arthritis drug after the agency demanded more clinical data, and it gave up on a blood-cancer drug after trial data disappointed. A company more desperate for a success may have thrown more good money after bad.
Steady
Remicade's resilience and rapid new-drug growth are flattering J&J's pharma unit
At times in the past, J&J's drug unit has had to make up for weak performance in its consumer and device businesses. But those are less of a drag lately, thanks partly to some deal-making. J&J has spent more than $7 billion over the past year and a half on consumer-focused Vogue International and Abbot Laboratories Inc.'s medical-optics business. But the consumer and device businesses both managed to grow in the quarter, even excluding the impact of acquisitions and divestitures.
They'll Take It
J&J's other units can't quite measure up to its pharma business, but things are improving
With Merck KGaA and Pfizer putting their consumer businesses on the market, there are plenty of opportunities for J&J to invest even more in these units. And the company's huge cash flows mean it doesn't have to wait, even after splurging on Actelion.
Even after spending a massive sum on Actelion, J&J has room to keep buying

Share-price highs are easy to dismiss in the current market, where records are often hit for no apparent reason. But J&J's is earned.

Return to headline | Return to top
J&J (JNJ) Beats on Q3 Earnings, Actelion Buyout Drives Sales

| Zacks Equity Research

Johnson & JohnsonJNJ reported better-than-expected third-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and sales. The drug and consumer products giant raised its 2017 sales and profit outlook, which sent shares up 1.5% in pre-market trading .
In fact, this year so far, J&J's share price is up 18.1%. This is almost in line with the 18.2% increase witnessed by the industry .
Earnings Beat
J&J's third-quarter 2017 earnings came in at $1.90 per share, beating the Zacks Consensus Estimate of $1.80 and increasing 13.1% from the year-ago period.
Including amortization expense and special items, J&J reported third-quarter earnings of $1.37 per share, down 10.5% from the year-ago period.
Sales Beat
Sales came in at $19.65 billion, beating the Zacks Consensus Estimate of $19.28 billion by 1.9%. Sales increased 10.3% from the year-ago quarter, reflecting an operational increase of 9.5% and a positive currency impact of 0.8%. Organically, excluding the impact of acquisitions and divestitures, sales increased 3.8% on an operational basis.
Third-quarter sales grew 9.7% in the domestic market to $10.29 billion and 10.9% in international markets to $9.36 billion, reflecting 9.3% operational growth and 1.6% positive currency impact.
Sales in Details
Pharmaceutical segment sales rose 15.4% year over year to $9.7 billion, reflecting 14.6% operational growth and 0.8% positive currency impact as sales rose in both the domestic and international markets. Sales in the domestic market rose 15.4% to $5.82 billion, while international sales grew 15.5% to $3.88 billion. Organically, excluding the impact of acquisitions and divestitures, sales increased 6.7% on an operational basis.
New products like Imbruvica (cancer) and Darzalex (multiple myeloma) continued to perform well. Other growth drivers were core products like Xarelto, Stelara and Invega Sustenna. Sales of Concerta and Zytiga improved in the quarter.
In the quarter, J&J recorded pulmonary arterial hypertension (PAH) revenues of $670 million. The $30 billion acquisition of Swiss biotech Actelion in June diversified J&J's revenues to the PAH category.
However, sales of Invokana/Invokamet declined 19.2% due to higher managed care discounting. Importantly, sales of the blockbuster rheumatoid arthritis drug Remicade, marketed in partnership with Merck & Co., Inc. MRK , declined 7.6% in the quarter with U.S. sales declining 1.3% and international sales declining 6.9% due to biosimilar competition. In this regard, we would like to mention that Pfizer, Inc. PFE filed a lawsuit in a U.S. district court recently. In the lawsuit, Pfizer alleged J&J of resorting to unfair practices to prevent sale of Inflectra - Pfizer's biosimilar version of Remicade - that was launched in the United States in November last year.
J&J's Pharma segment achieved some clinical milestones during the quarter including label expansions in the United States for pulmonary arterial hypertension (PAH) drug, Tracleer for pediatric use and Imbruvica for chronic graft versus host disease (GVHD) - the drug's first indication outside of cancer. J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV .
At the call, the company also mentioned that it will not file global regulatory applications for rheumatoid arthritis candidate, sirukumab. We remind investors that last month, J&J received a complete response letter (CRL) from the FDA for sirukumab for want of additional safety data.
Medical Devices segment sales came in at $6.6 billion, up 7.1% from the year-ago period. It included an operational increase of 6.6% and positive currency movement of 0.5%. Sales gained mainly from the inclusion of Abbott Medical Optics acquisition, which added 5.2% to operational sales growth. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales increased 1.2%.
Domestic market sales rose 4.6% year over year to $3.19 billion. International market sales increased 9.6% (operational increase of 8.6%) year over year to $3.41 billion.
Operational growth was driven by wound closure products in the General 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 $3.36 billion in the reported quarter, up 2.9% year over year(operational increase of 1.6%). Foreign currency movement positively impacted sales in the segment by 1.3%. Sales in the domestic market declined 0.5% from the year-ago period to $1.29 billion.
Slower growth in baby care products due to competitive pressure was partially offset by growth in beauty and over-the-counter products and international smoking cessation aids.
Meanwhile, the international segment recorded an increase of 5.1% to $2.07 billion, reflecting an operational increase of 3% and a positive currency impact of 2.1%.
2017 Guidance Raised
J&J raised its adjusted earnings and sales outlook for the year.
J&J expects 2017 adjusted earnings per share in the range of $7.25 - $7.30 compared with $7.12 - $7.22 expected previously.
The revenue guidance was raised to a range of $76.1 billion to $76.5 billion compared with $75.8 billion to $76.1 billion expected previously
Our Take
As indicated last quarter, J&J's sales growth accelerated in the third quarter leading the company to post its first positive sales surprise after almost a year. Higher sales in the pharmaceutical segment as well as positive contribution from the Actelion deal pulled up the top line in the quarter. The Actelion acquisition added an impressive 7.9% to operational sales growth in the quarter.

Though quite a few key products in J&J's portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, label expansion of drugs like Imbruvica and Darzalex and contribution from Actelion could lead to better sales trends, going forward.

Return to headline | Return to top
Johnson & Johnson says recent hurricane activity had ‘modest’ effect on company

| Market Watch

By Emma Court

The three recent U.S. hurricanes may affect drug and medical device makers’ earnings this season. But exactly how, and to what degree, remains to be seen.
Johnson & Johnson JNJ, +2.70%  , which reports earnings early and is considered a bellwether for the drug industry, said on Tuesday that weather-related events had a “modest” but limited impact on total overall growth of its medical device unit. Company shares rose 2.4% in heavy morning trade.
Many health-care companies have some manufacturing presence in Puerto Rico, which has spurred government concerns about drug shortages.
Johnson & Johnson itself has seven plants on the island manufacturing consumer goods, medical devices and drugs, according to J.P. Morgan analyst Michael Weinstein.
But rather than affecting supply, the hurricane impact was felt instead through lost surgery days, Chief Financial Officer Dominic Caruso said.
Though the company can’t rule out potential shortages, it is “very well positioned” in terms of future supply, Caruso said, noting that many of the company’s products have more than one production site and backup sites outside of Puerto Rico.
“Considering the magnitude of the storm, our facilities fared well,” Caruso said, adding, “the work continues to ramp up to full operations in Puerto Rico” and products newly manufactured in Puerto Rico have already begun to ship out.
Not all health-care companies have spoken out yet about the effect of Hurricane Maria in Puerto Rico. Among those that have, reports have been mixed.
In late September, Baxter International Inc. BAX, +0.13%  said that a loss of production days due to the hurricane could affect availability of saline — of which there is already a shortage — to U.S. hospitals.
Other drugmakers have said they were less affected. Amgen Inc. AMGN, +1.04%  has said it doesn’t expect a drug supply interruption, and AbbVie Inc. ABBV, +1.61%  said it expects “no patient impact.”
Two other hurricanes, Harvey and Irma, have also likely affected U.S. hospitals through damaged property, patient relocation and disrupted care.

Johnson & Johnson shares have surged 5.4% over the last three months, compared with a 3.9% rise in the S&P 500 SPX, -0.03%  . The Health Care Select Sector SPDR XLV, +1.04%  has risen 3.7% over the last three months, and was up 0.9% in Tuesday morning trade.

Return to headline | Return to top
Johnson & Johnson, Harley-Davidson Higher on Good 3rd-Quarter Results

| Guru Focus

By Omar Venerio

U.S. stock market traded relatively flat in premarket trading on Tuesday, but the Dow Jones Industrial Average rose after the market opened. The S&P 500 and Nasdaq Composite were lower.
Johnson & Johnson (NYSE:JNJ) jumped more than 2% on the back of the company reporting its financial results for the third quarter. The company posted earnings per share of $1.90 and diluted EPS of $1.37. The company’s revenue of $19.65 billion increased 10.3% from a year ago. Moreover, the company managed to beat EPS expectations by 10 cents. Revenue also beat estimates by $370 million.
Operational sales increased 9.5% and domestic sales increased 9.7%. International sales grew 10.9%, reflecting operational growth of 9.3% and a positive currency impact of 1.6%.

Chairman and CEO Alex Gorsky said the growth in the third quarter was driven by the strong performance of the pharmaceutical business, among other recent acquisitions.

Return to headline | Return to top
Johnson & Johnson Outlook Buoyed by Drug Unit (UPDATE – 1)

| The Wall Street Journal

By Jonathan D. Rockoff and Cara Lombardo

Johnson & Johnson JNJ +2.70% increased its 2017 sales and adjusted profit guidance for the third quarter in a row, though net income in the quarter fell due to one-time items and amortization related to the company’s ActelionALIOY -0.09% acquisition.
J&J, one of the largest health-products companies by revenue based in the U.S., urged lawmakers in Washington to “unite behind” a plan to overhaul the corporate tax system but said its 2017 guidance doesn’t assume there will be tax reform this year.
Overall in the third quarter, J&J’s revenue rose 10% to $19.7 billion. The company posted earnings per share of $1.37 on net income of $3.7 billion, which decreased 12% from $4.3 billion in the previous year’s quarter.
A J&J spokesman said profit fell “due to amortization and inventory step-up charges primarily related to” the company’s recent $30 billion acquisition of rare-disease drugmaker Actelion.
Adjusted earnings per share, which exclude one-time items and amortization expenses, were $1.90 on adjusted net income of $5.2 billion, which rose 11% from a year ago. Analysts polled by Thomson Reuters had expected adjusted net income of $4.9 billion.
J&J is now forecasting adjusted earnings per share for the year of $7.25 to $7.30, up from $7.12 to $7.22. It also raised its sales outlook to $76.1 billion to $76.5 billion, from $75.8 billion to $76.1 billion.
The New Brunswick, N.J., company’s shares, which are up 18% for the year, were up 2.3% Tuesday.
The company gave an indication of the impact of Hurricane Maria, which has devastated Puerto Rico, on the manufacturing of medical products there. J&J CFO Dominic Caruso said J&J’s six plants on the island are making and shipping products using generator power.
”Considering the magnitude of the storm, our sites fared very well,” Mr. Caruso said during a conference call with investors and analysts. He said he doesn’t expect the hurricane will have “any material impact to our future results.”
Mr. Caruso said the storm season had a “limited” negative impact on the company’s medical-device business because some hospitals canceled surgeries due to the bad weather.
Despite the storms’ impact, J&J’s medical-device sales rose 7.1% to $6.6 billion world-wide. Meanwhile, global consumer-health sales grew 2.9% to $3.4 billion.
Joaquin Duato, who runs J&J’s pharmaceuticals business, said its performance is accelerating during the second half of the year. Revenue from the prescription-drugs business, J&J’s largest, jumped 15% to $9.4 billion world-wide during the third quarter.
The pharmaceutical results were bolstered by J&J’s purchase of Swiss biotech Actelion earlier this year and gains by key brands, such as autoimmune disease treatment Stelara and blood-thinner Xarelto.
Revenue from Remicade, a rheumatoid-arthritis treatment that is J&J’s top-selling product, fell 7.6% to $1.6 billion amid competition from lower-priced copies called biosimilars.
Last month Pfizer Inc., which makes one of the Remicade biosimilars, sued J&J, alleging it had protected Remicade from Pfizer’s biosimilars through “exclusionary contracts” that violate federal antitrust law.
Mr. Duato said during the conference call that Remicade’s price after discounts has fallen amid the competition.
”The key factor to Remicade being successful is physicians and patients have a high confidence in Remicade based on experience” using the drug, and they don’t want to switch to another therapy, Mr. Duato said, noting the biosimilars aren’t “interchangeable” with Remicade.
The company also said it is dropping development of two drugs that it had expressed high hopes for: rheumatoid-arthritis therapy sirukumab and talacotuzumab for acute myeloid leukemia.

Earlier this month, J&J abandoned its insulin pump business in the U.S. and Canada, and pledged to help transition its roughly 90,000 diabetes patients toMedtronic PLC’s pumps instead. Medtronic commands about 65% of the insulin pump market, while analysts estimate J&J held 10%. Groups representing diabetes patients have said they are concerned that J&J’s decision will limit options and stunt innovation.

Return to headline | Return to top
Understanding Johnson & Johnson's Spectacular Q3 Performance

| Seeking Alpha

By Nick McCullum

Summary
·         On October 17, 2017, Johnson & Johnson reported earnings for its third quarter of fiscal 2017.
·         The company reported double-digit growth in both sales and earnings.
·         Much of this growth can be attributed to the positive impact of the $30 billion Actelion acquisition, which closed this summer.
·         We believe that Johnson & Johnson's underlying business will continue to grow at an adequate rate.
·         With that said, the company does appear to be trading at a premium to fair value.

Johnson & Johnson (JNJ) is one of the most stable publicly-traded businesses. The company is one of only two stocks to carry the coveted AAA credit rating from Standard & Poor’s (along with Microsoft).
Moreover, Johnson & Johnson has increased its annual dividend payment for 54 years. This qualifies the company to be not just a Dividend Aristocrat(stocks with 25+ years of consecutive increases), but a Dividend King (stocks with 50+ years of consecutive increases).
Investors can gain tremendous peace of mind by investing in such stable businesses. However, there is an unspoken understanding among many investors that we must trade growth for stability.
This is not always the case.
Johnson & Johnson’s most recent quarterly earnings release can provide an example of this. Despite being one of the most defensive positions in our investment universe, the company delivered double-digit growth in both revenues and earnings-per-share.
This article will analyze Johnson & Johnson’s recent financial performance in detail and determine whether the stock merits a buy recommendation at current prices.
Third Quarter Financial Performance
Johnson & Johnson’s third quarter earnings release demonstrated robust, broad-based growth in many of the company’s businesses.
Quarterly sales of $19.7 billion increased 10.3% from the same period a year ago. On a constant-currency basis, sales increased by 9.5% while the positive impact of currency fluctuations contributed 0.8% to top-line growth.

Return to headline | Return to top
New cancer drugs help J&J top profit estimates (UPDATE - 5)

| Reuters

By Akankshita Mukhopadhyay and Michael Erman

Johnson & Johnson posted better-than-expected third-quarter earnings, raising its full-year forecast due to growth from new cancer drugs and high-margin treatments picked up in its $30 billion acquisition of Actelion earlier this year.
Shares of J&J, part of the Dow Jones Industrial Average, rose 3.4 percent to $140.79 on Tuesday.
The shares have traded at or near record levels for much of the year. Guggenheim Securities analyst Tony Butler said the stock has historically done well when its high-margin pharmaceuticals business is the main driver of growth, rather than its consumer segment.
Sales at J&J's pharmaceuticals segment rose 15.4 percent to $9.7 billion in the third quarter. Around half of that growth came from the Actelion deal.
Higher demand for J&J's blood cancer drugs, Darzalex and Imbruvica, and Actelion's rare diseases treatments are expected to boost earnings going forward.
The two cancer drugs should continue to capture market share, Guggenheim Securities' Butler said.
"The oncology business is doing exceptionally well," he said. "It's really hard to figure out where that stops for both Darzalex and Imbruvica."
Still, sales of J&J's diabetes drug, Invokana, slipped around 10 percent from the second quarter. The company this year was required to add new warnings about the risk of foot and leg amputations and also has had to contend with competition from Eli Lilly and Co's Jardiance.
Its rheumatoid arthritis drug, Remicade, also had weaker sales in the quarter.
J&J said adjusted earnings, excluding one-time items, rose 13 percent to $1.90 per share. Analysts on average were expecting an adjusted profit of $1.80 per share , according to Thomson Reuters I/B/E/S.
Sales at J&J's consumer products segment, which makes Band-Aids, Neutrogena beauty products and Tylenol, rose 2.9 percent to $3.4 billion.
The company's net earnings fell to $3.76 billion, or $1.37 per share, in the quarter from $4.27 billion, or $1.53 per share, a year earlier. The company said it was hurt by amortization and deal-related expenses.
J&J raised its 2017 profit forecast to $7.25 to $7.30 per share, from its previous forecast of $7.12 to $7.22 per share. It now expects revenue of $76.1 billion to $76.5 billion for the year.
Johnson & Johnson has six drug manufacturing facilities on Puerto Rico, which was hit by Hurricane Maria last month. It said that while they are all running again, it cannot rule out intermittent shortages of some of its drugs.

Also on Tuesday, the company won the reversal of a $72 million verdict in favor of the family of a woman whose death from ovarian cancer they claimed stemmed from her use of the company's talc-based products like Johnson's Baby Powder.

Return to headline | Return to top
Johnson & Johnson (JNJ) Beat Q3 Earnings, Ups Forecast

| Investor Place

By William White

Johnson & Johnson (NYSE:JNJ) stock was up today on positive earnings for the third quarter of 2017.
Johnson & Johnson’s earnings per share for the third quarter of the year was $1.90. This is a 13% increase over its earnings per share of $1.68 from the third quarter of 2016. It was also a plus for JNJ stock by beating Wall Street’s earnings per share estimate of $1.80.
Revenue reported by Johnson & Johnson in the third quarter of 2017 was $19.65 billion. The maker of consumer goods reported revenue of $17.82 billion during the same period of the year prior. Analysts were looking for JNJ to report revenue of $19.28 billion in the quarter.
JNJ stock also likely got a boost today from news of an increase in the company’s full-year-2017 forecast. It is now expecting earnings per share for the year to range from $7.25 to $7.30 on revenue ranging from $76.1 billion to $76.5 billion. Wall Street is looking for Johnson & Johnson to report earnings per share of $7.18 on revenue of $75.83 billion for the year.
“Johnson & Johnson accelerated growth in the third quarter,” Alex Gorsky, JNJ Chairman and CEO, said in a statement. “This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth.”
Johnson & Johnson reported net earnings of $3.76 billion in its third quarter of the year. This is down from its net earnings of $4.27 billion that was reported in the same quarter of the previous year.
JNJ stock was up 2% as of Tuesday afternoon and is 21% year-to-date.

Return to headline | Return to top
Johnson & Johnson Jumps on Pharma Strength

| The Motley Fool

By Dan Caplinger

Johnson & Johnson (NYSE:JNJ) has been a behemoth in the U.S. healthcare space for decades. Yet as a mature company, J&J faces the inevitable challenge of finding ways to keep its growth rates up even as its business gets ever larger. Results from recent quarters had shown signs of potentially slowing increases in sales and profits, and that raised some worries among longtime investors that Johnson & Johnson might have hit peak growth in its core business.
Coming into Tuesday's third-quarter financial report, Johnson & Johnson shareholders wanted reassurances that aggressive moves like the acquisition of Actelion would pay off with better fundamental performance. J&J's report strongly suggested that its long-term strategy is working well, and the company seems more optimistic than ever that its combination of organic growth opportunities and smart acquisitions can help power it forward in the years to come.
Sales, earnings shoot higher at J&J
Johnson & Johnson's third-quarter financial results were a nice break from more sluggish trends in past quarters. Sales jumped more than 10% to $19.65 billion, outpacing the consensus forecast among investors by nearly $400 million. GAAP (generally accepted accounting principles) net income was down from the year-ago period, largely due to special items, but adjusted net income grew 11% to $5.2 billion, which worked out to $1.90 per share. The bottom-line figure was better than the $1.80 per share that most investors had expected.
Taking a closer look at the report, the acquisition of Actelion had a clear and substantial impact on Johnson & Johnson's overall results. Within the pharmaceutical segment, sales jumped 15.4% to $9.7 billion, and the acquisition added almost 8 percentage points to that growth rate. Still, the organic growth rate was 6.7%, which was itself a nice rebound from a weak second quarter in which domestic pharmaceutical sales were actually down. Cancer-fighters Darzalex and Imbruvica continued to add to sales strength, along with other treatments like immune inflammatory treatment Stelara and blood thinner Xarelto.
Medical devices also saw a rebound in sales, climbing more than 7% with particular strength in international markets. Most of that growth came from the acquisition of Abbott Medical Optics, but organic worldwide sales were still up 1.2%, climbing back from an almost 1% drop last quarter.

Return to headline | Return to top
Healthcare Drives Small Gains for Dow While Rest of Market Slips

| The Street

By Keris Alison Lahiff

The healthcare sector rose on Tuesday, Oct. 17, following positive earnings from UnitedHealth Group Inc. (UNH - Get Report) and Johnson & Johnson (JNJ - Get Report) but the rest of the market was trading lower.
The Dow Jones Industrial Average exceeded the 23,000 level for the first time on Tuesday with just small gains. The blue-chip index most recently was up 0.09% to 22,977, but hit its new milestone earlier in the day and remained on track to close at a new record. The Dow first topped the 22,000 mark on Aug. 2.
The rest of the market wavered just below the flatline. The S&P 500 was down 0.06% and the Nasdaq dipped 0.04%. Any gains for either index would mark new records.
UnitedHealth beat on its bottom line but missed on the top. Earnings rose to $2.51 a share from $2.03 a share a year earlier. Adjusted earnings of $2.66 a share bested estimates of $2.56. Revenue of $50.32 billion came in below consensus of $50.37 billion. Overall revenue increased nearly 9%, driven by an 8.4% gain in its pharmacy benefit management unit.
UnitedHealth surged more than 5% and was on track to close at a new record with its best price gain since going public in 1984.
Johnson & Johnson gained 2% after beating earnings estimates and upping its full-year profit guidance. Pharmaceuticals revenue increased 15% over its recent quarter, while medical device sales in the U.S. rose 7.
For the full year, Johnson anticipates adjusted earnings of $7.25 to $7.30 a share, higher than previous guidance of $7.12 to $7.22. Sales guidance of $76.1 billion to $76.5 billion was raised from $75.8 billion to $76.1 billion.
The two were the best performers on the Dow on Tuesday. Other health stocks on the rise included AbbVie Inc. (ABBV - Get Report) , Celgene Corp. (CELG - Get Report) , Bristol-Myers Squibb Co. (BMY - Get Report) and Biogen Inc. (BIIB - Get Report) . The SPDR ETF increased 1%.
The sector has had a rough few sessions after President Donald Trump cut off subsidies to insurance companies as a way to undermine Obamacare and then railed against drugmakers for "getting away with murder." Trump and congressional Republicans have worked to repeal the Affordable Care Act first through legislation, a process that failed to deliver the votes, and now by executive order.
Dow component Goldman Sachs Group Inc. (GS - Get Report) was the worst performer on the index, falling 1.4%. The bank posted third-quarter earnings of $5.02 a share, topping Wall Street forecasts of $4.17. Net revenue in the quarter was $8.3 billion, up from $8.2 billion a year earlier.
However, trading revenue took a hit, falling 17% and coming in the worst among its peers. That compares with trading declines of 16% at JPMorgan Chase & Co. (JPM - Get Report) , 13% at Bank of America Corp. (BAC - Get Report) and 8% at Morgan Stanley.
Morgan Stanley ( MS - Get Report) posted higher earnings than analysts projected as growth in wealth management made up for the tumbling bond-trading revenue that plagued firms across Wall Street. Net income rose by 6%, while earnings of 93 cents a share beat estimates of 81 cents.
Fixed-income trading revenue slumped 20%. Comparables in that unit were not favorable this year after following sharp growth in 2016 on Britain's decision to leave the European Union and volatility surrounding the U.S. presidential election. Total investment banking revenue increased 18%.
Netflix Inc. (NFLX - Get Report) reported third-quarter earnings and sales that topped Wall Street forecasts, added 5.3 million new subscribers worldwide, and said it plans to spend between $7 billion and $8 billion on content in 2018, up from the $6 billion it will spend this year. Netflix said it already has committed to spend $17 billion over the next several years on content, and noted that its original content budget continues to swell each year.
"Our future largely lies in exclusive original content that drives both excitement around Netflix and enormous viewing satisfaction for our global membership and its wide variety of tastes," the company wrote in its third-quarter letter to shareholders released on Monday. "Our investment in Netflix originals is over a quarter of our total P&L content budget in 2017 and will continue to grow."

Return to headline | Return to top
Johnson & Johnson Looks Overvalued Today

| Morningstar

Third-quarter earnings were ahead of Street expectations, driven mostly by robust growth in the drug division.
Johnson and Johnson reported third-quarter earnings that were ahead of our expectations and better than Street consensus expectations. A lot of this is being driven by a lot of growth in the drug division. The drug division continues to post very robust growth, really led by its immunology and its oncology franchises. One area we were particularly surprised by is the continued strength in a drug called Remicade. Remicade is for a lot of different immunological disorders, in particular RA. This drug continues to hold up despite biosimilar competition coming.
We're anticipating this drug will face some headwinds going forward, and this will drag down the drug group in time. Hence, we see the stock of J&J to be slightly overvalued.
Within the backdrop beyond the drug division, the consumer division and the device divisions are stagnating a bit in their growth. We do anticipate the growth to reaccelerate in those divisions, however we anticipate it will take some time for J&J to reinvest in the branding power in the consumer group and within some new devices within the overall device division.

Nevertheless, we think J&J will post very steady growth with its earnings, but again we do see the stock as slightly overvalued because of growing concerns within the pharmaceutical division, due to generic competition, notably to Remicade, but to other drugs that are facing some generic competition over the next two to three years.

Return to headline | Return to top
Are Investors Shying Away from Shares of Johnson & Johnson (NYSE:JNJ)?

| Morgan Leader

Strategic investors have taken a closer look of late at shares of Johnson & Johnson (NYSE:JNJ). Given the cheap price, many are wondering if there is now value and potential upside to the name. During the most recent session, shares touched $140.97 after moving 2.21%.
Sometimes the stock market can be very confusing, even for the most seasoned investors. Even when expectations are met as predicted, the market may decide to move otherwise. This can cause uncertainty and second guessing. Keeping up with historical data as well as short-term and long-term trends may be very helpful. Over the past week, Johnson & Johnson (NYSE:JNJ) shares have performed 2.00%. Pushing back over the last quarter, shares are 1.23%. Looking at stock performance for the past six months, shares are 11.74%. Since the start of the calendar year, shares have performed 18.15%.

Let’s take a quick look at some possible support and resistence levels for the stock. According to a recent spotcheck, company Johnson & Johnson (NYSE:JNJ) have been seen trading 2.51% away from the 50- day high. On the opposite end, shares have been trading 9.24% away from the 50-day low price. Taking a wider perspective, shares have been recently trading 2.51% off the 52-week high and 28.95% away from the 52-week low.
EPS
EPS is a portion of a company’s profit distributed to each outstanding common share. It acts as an indicator of a company’s profitability. EPS is considered to be the single mostimportant variable in determining a the price of a share. Johnson & Johnson (NYSE:JNJ)’s EPS growth this year is 8.30% and their trailing 12-month EPS is 5.91. As such, analysts can estimate Johnson & Johnson’s growth for next year as 7.84%.

RETURNS AND RECOMMENDATION
While looking at past performance of a particular stock is important when speculating on its future, we must take other indicators into consideration as well. What are the returns? Johnson & Johnson (NYSE:JNJ)’s Return on Assets (ROA) of 11.30% is an indicator of how profitable Johnson & Johnson is relative to their total assets. ROA gives us an idea of how efficient management is at using assets to generate earnings We get ROA by dividing their annual earnings by their total assets. Johnson & Johnson’s Return on Equity (ROE) is 22.90%, measure their profitability and reveals how much profit they generate with the money their shareholders. We calculate ROE by dividing their net income by their shareholder’s equity. Finally, Johnson & Johnson’s Return on Investment, a measure used to evaluate the efficiency of an investment, calculated by the return of an investment divided by the cost, stands at 17.00%. Analysts on a consensus basis have a 2.50 recommendation on this stock.

Return to headline | Return to top
Johnson & Johnson Reports Double-Digit Sales and Adjusted Earnings Increases for Third Quarter

| Vision Monday

Johnson & Johnson (NYSE: JNJ) reported Tuesday that sales in its third quarter rose 10.3 percent to $19.7 billion, while sales in the U.S. market increased 9.7 percent in the period. On an “operational” basis, J&J’s sales rose 9.5 percent, according to the company’s announcement.

Alex Gorsky, J&J’s chairman and chief executive officer, said the accelerated growth in the third quarter was “driven by the strong performance of our pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth.” (In the third quarter, J&J also acquired the contact lens subscription service Sightbox Inc. and TearScience Inc., which manufactures products dedicated to treating meibomian gland dysfunction).

Net earnings and diluted earnings per share for the third quarter of 2017 were $3.8 billion and $1.37, respectively.

Within the vision care segment of its business, J&J reported that third-quarter sales of contact lenses and “other” related products rose 8.3 percent to $800 million (a 9.1 percent increase on an operational basis), driven in part by the performance of Oasys 1-Day and Oasys 1-Day for Astigmatism. The U.S. portion of the contact lens business reported sales of $302 million, a 9 percent increase compared with $277 million in the year-ago period.

International sales of contact lenses totaled $498 million in the quarter, which represented an increase of 9.1 percent on an operational basis compared with the year-ago third quarter.

In its earnings announcement, J&J also noted that it is raising its sales guidance for 2017 to a range of $76.1 billion to $76.5 billion, and raising its adjusted earnings guidance for the year to a range of $7.25 to $7.30 per share.

Return to headline | Return to top
J&J: Puerto Rico Operations Still Open, Limited Impact From Hurricanes

| The Street

By Armie Margaret Lee

Johnson & Johnson (JNJ - Get Report) said Tuesday, Oct. 17, the recent hurricanes had a limited impact on the company's sales.
"In terms of sales, the limited impact we experienced in the third quarter is not the result of any supply disruption but rather lost surgery days in those areas affected by the storms," said chief financial officer Dominic Caruso on an earnings call.
Caruso said that while it remains to be seen whether volumes related with the lost surgeries will be recouped in future quarters, the company is "very well-positioned" in terms of future supply.
The New Brunswick, N.J.-based company said it has six manufacturing facilities in Puerto Rico, all of which are open with generator power.
"While we cannot rule out the potential for intermittent shortages of certain product formats, many of our products have dual production sites and backup supply outside of Puerto Rico to help meet demand," he said. "Based on what we know today, we do not foresee any material impact to future results."
Johnson & Johnson unveiled third-quarter results that surpassed analysts' expectations and raised its full-year adjusted EPS and sales guidance.
The company reported adjusted diluted earnings per share of $1.90, up 13.1% year-over-year, on revenue of $19.7 billion, representing a 10.3% increase from the year-ago period.
Analysts had forecast, on average, non-GAAP EPS of $1.75 on revenue of $19.3 billion, according to FactSet Research Systems Inc.
Pharmaceutical sales worldwide were $9.7 billion during the quarter, up 15.4% compared to the year-ago period. Medical devices sales were $6.6 billion, up 7.1% year-over-year, and consumer sales rose 2.9% to $3.4 billion.
Johnson & Johnson hiked its full-year sales outlook to a range of $76.1 billion to $76.5 billion, compared to the previous guidance of $75.8 billion to $76.1 billion. It now expects adjusted earnings of $7.25 to $7.30 per share, compared with the previous forecast of $7.12 to $7.22 a share.
Shares of Johnson & Johnson were trading at $139.21 on Tuesday, up 2.3%.
Also on Tuesday, Johnson & Johnson said it has decided not to pursue global approvals of sirukumab for the treatment of moderately to severely active rheumatoid arthritis. The company's Janssen Biotech Inc. unit on Sept. 22 said it has received a complete response letter from the U.S. Food and Drug Administration for the biologics license application seeking approval of sirukumab.
In addition, the company said Tuesday it has discontinued the clinical study of talacotuzumab in patients with acute myeloid leukemia.

Return to headline | Return to top
What's Powering Johnson & Johnson's Impressive Quarterly Earnings?

| The Motley Fool

By Todd Campbell

Johnson & Johnson (NYSE:JNJ) surprised investors with better-than-hoped-for top-line and bottom-line performance in the third quarter, and that news sent shares soaring on Tuesday. The company's revenue and profit growth were supported by acquisitions, but even after factoring out the positive impact of deals, the financial results were still impressive. Here's what's behind J&J's strong quarter and what the future may have in store for this Dividend Aristocrat.Digging into the details
Johnson & Johnson markets consumer goods, pharmaceuticals, and medical devices, and in the third quarter, sales in each of these segments were higher than Q3 2016.
Revenue from consumer-goods brands, including Band-Aid and Aveeno, grew 2.9% year over year to $3.3 billion while medical-device revenue increased 7.1% to $6.6 billion. Pharmaceuticals revenue, which represents nearly 50% of sales, increased 15.4% to $9.7 billion.
Currency tailwinds explain a big chunk of the company's consumer-goods growth. Remove the benefit associated with converting overseas sales back into dollars last quarter, and we end up with 1.6% growth, which is more in line with what investors should expect from J&J's mature product-line up.
Medical-device revenue also enjoyed a small increase because of currency, but most of the increase came from J&J's acquisition of Abbott Medical Optics. After adjusting for that deal, medical-device sales inched up by only 1.2% year over year. Powered By
Pharmaceutical revenue also comes with some disclaimers. The segment's performance was heavily influenced by its acquisition of Actelion, which added about 8% to operational sales growth. Back Actelion out of the results, and pharmaceutical sales were up 6.7% year over year.
Contributing to the gains in the pharmaceutical segment were the multiple myeloma drug Darzalex, the blood cancer drug Imbruvica, the prostate-cancer drug Zytiga, and the autoimmune-disease drug Stelara. Those drugs saw demand increase notably over the past year because label expansions increased their addressable markets.
In June, the FDA OK'd Darzalex's use alongside widely used multiple myeloma drugs Pomalyst and dexamethasone in patients who've tried and failed at least two prior therapies. This additional indication helped Darzalex's third-quarter sales improve 94.5% year over year to $317 million.
Imbruvica, which J&J shares with AbbVie (NYSE:ABBV), won FDA approval in the third-quarter for use in chronic graft-versus-host disease, a life-threatening condition that some transplant patients experience. Rising market share in its primary market, chronic lymphocytic leukemia, resulted in J&J's pocketing $512 million from Imbruvica, up 46.7% from Q3 2016.
Zytiga revenue increased in the wake of data suggesting it's effective in earlier inpatient treatment. Trial results showed Zytiga can be used successfully in combination with prednisone and ADT in patients with high-risk metastatic hormone-naive prostate cancer or newly diagnosed, high-risk metastatic hormone-sensitive prostate cancer. J&J filed a supplemental new drug application last quarter, but it appears doctors may already be prescribing Zytiga in these patients. Zytiga sales rose 14.9% in the past year to $669 million last quarter.
As for Stelara, doctors continue to embrace it for use in Crohn's disease patients following approval in that indication last year. Stelara's revenue climbed 38% year over year to $1.1 billion last quarter, and with $4.4 billion in annualized sales, Stelara trails only Remicade in terms of company product revenue.
Speaking of Remicade, investors ought to feel pretty good about its performance last quarter too. Even though the FDA approved two Remicade biosimilars in the past year, Remicade sales slipped by only 7.6% in the past year to $1.6 billion. U.S. Remicade revenue fell by only 1.3% year over year despite the competition.What's investors' takeaway?
J&J is leveraging sales growth against fixed costs, and that's providing a nice tailwind to earnings. In the quarter, adjusted earnings were $5.2 billion, up 11.2% from one year ago. Because share buybacks reduced its share count, earnings per share grew even more quickly, increasing 13% to $1.90.
Management's guidance for the rest of the year suggests they're confident this profit-friendly trend will continue. J&J's targeting sales of between $76.1 billion and $76.5 billion and non-GAAP EPS of $7.25 to $7.30 in 2017, up from a previous forecast for sales of between $75.8 billion to $76.1 billion and adjusted EPS of $7.12 to $7.22.
Given the company's solid top- and bottom-line performance, it appears there's plenty of financial flexibility to support its dividend friendly status as a Dividend Aristocrat. The company's upped its dividend payout for more than 50 consecutive years, making it a core stock to own in income portfolios.
10 stocks we like better than Johnson & Johnson
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Return to headline | Return to top
Johnson & Johnson: Q3 highlights and key takeaways

| FirstWordPharma

By Michael Flanagan

Johnson & Johnson presented its third quarter earnings on October 17. Here's what the drugmaker said about its key growth drivers and most important late-stage pipeline assets, as well as possible read-throughs to competing products and companies.
Autoimmune booster shot
Pharma revenues grew during the period by nearly 15 percent year-over-year, with the performance being driven in part by strong sales for Remicade (infliximab) and Stelara (ustekinumab), which beat consensus estimates by $124 million (12 percent) and $67 million (4 percent), respectively.
Johnson & Johnson noted that Remicade continued to experience erosion in market share during the period, albeit by only 1 percent or so in the US compared to a 23-percent decline internationally, due to increased competition from biosimilars.
“The most important factor in the success of Remicade is the physician and patient experience, and the body of data that supports using Remicade on the lack of interchangeability,” remarked Joaquin Duato, Johnson & Johnson’s executive vice president and worldwide chairman of pharmaceuticals, on the company’s conference call. “We continue to compete vigorously in price and we continue to drive reductions of course for the overall system based on that,” he added.
Stelara is picking up a lot of the slack for Remicade, with growth of the mAb against IL-12/IL-23 driven by especially strong uptake in Crohn’s disease, where the drug is estimated to have achieved a 10-percent market share.
Prostate cancer bounces back
Sales of prostate cancer drugs softened in first half of 2017 amid a federal investigation into charities designed to help mitigate patients’ out-of-pocket costs for the medicines, but it appears as though demand may be on the upswing again.
Johnson & Johnson reported $669 million in 3Q17 sales of its Zytiga (abiraterone), well above the $578 million that the Street was expecting, with the company attributing the 14 percent increase in part to market growth, while positive results from the Phase III LATITUDE and STAMPEDE trials in patients with hormone-naïve prostate cancer serving as an additional tailwind. (See KOL Views Results: Pfizer, Astellas could re-seize upper hand with Xtandi thanks to PROSPER, but plenty of bullets to dodge, says leading urologist.)
An increase in funding from patient assistance foundations would be good news for Astellas and Pfizer, which have also seen sales of their Xtandi (enzalutamide) dinged by fallout from the investigation.
Invokana softens
It was only a matter of time until demand for Johnson & Johnson’s Invokana (canagliflozin) weakened due to a combination of its own safety issues and strong results for Jardiance (empagliflozin) from Boehringer Ingelheim and Eli Lilly, and third quarter sales suggest the relative clinical performances of the two SGLT-2 inhibitors are now having a notable impact prescribing patterns.
Sales of Invokana (and its metformin-paired Invokamet) came in at $265 million for the period, well below the consensus estimate of $304 million, with increasing discounting and higher Medicaid utilisation also taking a toll. Invokana’s market share has fallen 10 percent year-to-date and stands at 41 percent, while Jardiance has added 11 percent and now owns a 28-percent share.
Plot thickening on blood thinners
“Let me start with Xarelto that posted very impressive growth in this quarter of 20 percent, mainly driven by share gains and that we believe will be sustained into next year,” according to Duato.
Most of the growth for Xarelto is coming at the expense of generic warfarin, which is perhaps not all that surprising given the safety and convenience advantages the new oral anticoagulant (NOAC) drug offers, though the fact is it is continuing to lose ground to Bristol-Myers Squibb and Pfizer’s Eliquis (apixaban) on a relative basis.
Xarelto has increased its market share by 2.2 percent so far this year to 23 percent, while Eliquis has gained 4.6 percent and now owns a 26-percent share.
Johnson & Johnson plans to submit marketing applications this year for Xarelto based on the success of the Phase III COMPASS trial in coronary and peripheral artery disease (CAD and PAD), which one key opinion leader told FirstWord could serve as an important inflection point for the NOAC. (See KOL Views: Leading haematologist says COMPASS could be massive boost for Bayer, Johnson & Johnson’s Xarelto.)
Actelion not pulling its weight yet
Johnson & Johnson completed its $30-billion acquisition of Actelion in June and the addition of the company’s blockbuster pulmonary arterial hypertension (PAH) franchise, including Opsumit (macitentan) and Uptravi (selexipag), which together with Tracleer (bosentan) accounted for almost $600 million in third quarter sales.
Opsumit and Uptravi posted $259 million and $124 million in 3Q17 sales, which was up from their performances during the same quarter in 2016 but below the respective $282-million and $132-million projections for which Credit Suisse analysts were calling.
While the added sales helped boost Johnson & Johnson’s operational pharma sales (growth would have been 6.7 percent without acquisitions and divestitures), the two leading PAH drugs did not quite live up to expectations, which may fuel questions about how and whether the US drugmaker can reenergise the franchise.
Maria managed – mas o menos
Many major biopharma companies have extensive manufacturing facilities in Puerto Rico, which may lead to lingering concerns from investors about whether recent weather patterns, and Hurricane Maria in particular, will have a significant impact on drugmakers’ operations.
Johnson & Johnson’s 3Q17 earnings announcement will offer some relief on this front as the company said the effects had been modest, with little to no supply disruptions and any impact on earnings limited to a slowdown in medical device sales due to surgery days missed in other affected regions, including Texas and the Gulf Coast.
End of the road
Johnson & Johnson also revealed in its quarterly earnings announcement that it no longer plans to pursue global approvals of sirukumab, an anti-IL-6 mAb to treat rheumatoid arthritis (RA) for which the FDA issued a complete response letter in September requesting additional clinical trials. The company also said it discontinued talacotuzumab, a mAb against CD123 that was in Phase III testing for acute myeloid leukaemia (AML)

Return to headline | Return to top
Johnson & Johnson shares hit a fresh all-time high on Tuesday as third-quarter earnings beat estimates, full-year forecast revised up

| Binary Tribune

Johnson & Johnson’s third-quarter earnings, reported yesterday, outstripped market expectations, supported by strong performance at the company’s pharmaceuticals segment. J&J also revised up its full-year earnings forecast due to potentially stronger demand for its new cancer drugs.
Johnson & Johnson shares closed higher for the eleventh time in the past thirteen trading sessions on Tuesday. It has also been the steepest daily surge since January 26th 2016. The stock went up 3.43% ($4.67) to $140.79, after touching an intraday high at $141.12 and also a fresh all-time high.
In the week ended on October 15th the shares of the health care product manufacturer added 2.41% to their market value compared to a week ago, which marked a second consecutive period of gains.
The stock has extended its advance to 8.29% so far during the current month, following a 1.78% slump in September. The latter has been a second consecutive monthly loss and also the largest one since November 2016.
For the entire past year, the shares of the NYSE-listed company rose 12.16%. The stock has gained another 22.20% so far in 2017.
Johnson & Johnson’s revenue from its pharmaceuticals segment went up 15.4% to $9.7 billion during the latest quarter compared to the same period a year ago, with almost half of the growth being a result of the $30-billion acquisition of Actelion earlier in 2017.
At the same time, sales at the company’s consumer products segment were reported to have increased 2.9% year-on-year to $3.4 billion during the third quarter.
Johnson & Johnson’s net earnings were reported to have shrunk to $3.76 billion ($1.37 per share) during the third quarter from $4.27 billion ($1.53 per share) during the same period a year ago, as a result of amortization and deal-related expenditures.
On the other hand, the company’s adjusted earnings per share, excluding special items, went up 13% year-on-year to $1.90 during the latest quarter. In comparison, the median forecast by analysts had pointed to adjusted earnings of $1.80 per share, data by Thomson Reuters showed.
Meanwhile, Johnson & Johnson boosted its full-year 2017 earnings forecast to a range between $7.25 and $7.30 per share, due to potentially stronger demand for its Darzalex and Imbruvica blood cancer drugs as well as for Actelion’s rare diseases treatments. The company had expected earnings of $7.12 to $7.22 per share previously.
J&J now projects full-year 2017 revenue ranging between $76.1 billion and $76.5 billion.
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Johnson & Johnson’s stock price, have a median target of $141.00, with a high estimate of $150.00 and a low estimate of $110.00. The median estimate is a 0.15% surge compared to the closing price of $140.79 on October 17th.
The same media also reported that 11 out of 25 surveyed investment analysts had rated Johnson & Johnson’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Return to headline | Return to top
Dow Stock J&J Pops After Topping Sales, Profit Expectations

Oct 18, 2017 | Investor's Business Daily

By Allison Gatlin

Dow component Johnson & Johnson (JNJ) surpassed Wall Street's third-quarter expectations early Tuesday on strength in its pharmaceutical unit and boosted its 2017 guidance — prompting shares to pop in premarket trades.
Autoplay: On | OffBy the closing bell on the stock market today, J&J stock jumped 3.4% to finish at 140.79. Shares broke out of a flat base with a buy point at 137.18 on Oct. 12.
For its third quarter, J&J reported $19.7 billion in sales and adjusted income of $1.90 per share, up a respective 10.3% and 13.1% vs. the year-earlier quarter. Both metrics topped the consensus of analysts polled by Zacks Investment Research for $19.28 billion in sales and $1.80 a share in earnings.
RBC analyst Glenn Novarro attributed J&J's sales beat to upside in its pharma unit. Global sales were $300 million above his forecast and $360 million above the consensus.
Pharma revenue topped Novarro's estimate by $270 million, but medical device sales lagged.Pharma Sales Jump
Worldwide pharma sales of $9.7 billion increased 15.4% on a year-over-year basis. Key products included cancer drugs Darzalex, Imbruvica and Zytiga, with the latter beating Novarro's views by $125 million. Sales from the new Actelion brands were $30 million below Novarro's model.
IBD'S TAKE: J&J isn't alone in reporting quarterly results this week as earnings season kicks off in earnest. Keep tabs on IBD's Investing Action Plan for what's on deck each day.
Medical devices sales grew 7.1% to $6.6 billion, but that included some shortfalls and was slightly below Novarro's view for $6.61 billion. Orthopedic and vision care revenue both were light by $25 million and $40 million, respectively, he wrote in a note to clients.
J&J's consumer unit grew 2.9% to $3.4 billion and were just ahead of the RBC estimate for $3.31 billion. On an operational basis, over-the-counter and beauty sales each grew 4.4%, but all other categories fell "highlighting the continued pressure in the segment."
The firm also raised its 2017 guidance to sales of $76.1 billion to $76.5 billion, up from $75.8 billion to $76.1 billion. It sees adjusted income of $7.25-$7.30 per share vs. earlier expectations for $7.12-$7.22, Novarro wrote. Analysts had modeled $75.9 billion in sales and $7.19 in per-share earnings.Hurricane Impact Minimal
J&J disclosed that its medical devices segment sustained a negative impact of 30 basis points following hurricanes in Texas, Florida and Puerto Rico. J&J is among a number of firms with manufacturing facilities in Puerto Rico. Investors have been wary of the effects of the storms.
The negative impact was attributed to lost surgery days in areas affected by stormwater, wrote Leerink analyst Geoffrey Porges in a note to clients. There was no supply disruption and all six of the firm's sites in Puerto Rico are open with generator power and running at different capacities.
Porges notes that J&J's results could extend to others in the biotech space.
"Given J&J's reliance on Puerto Rico for pharmaceutical manufacturing, and their lack of disclosure regarding demand and supply impacts, we are increasingly confident that companies in our biopharma coverage will not experience material storm-related Q3 headwinds," he said.
But RBC's Novarro is a bit less bullish. J&J's results point to "continued soft U.S. market trends" in medical devices and diagnostics, he said. Excluding acquisitions and divestitures, J&J's medical devices and diagnostics unit grew just 1.2% year over year.Hospital Sales Down
Overall, U.S. hospital admissions were down 50 to 100 basis points with U.S. surgical procedures down about 250 basis points, on a year-over-year basis, Novarro wrote. J&J's orthopedic sales were short on weak performance in its knee and spine segments.
"Weak knee performance was blamed on the negative impact of India implant pricing legislation," he wrote, estimating a $10 million sales impact in the quarter. Worldwide, knee revenue declined 4.4% year over year. Revenue from hip products, though, grew 1.5% on pricing declines.
J&J likely lost share to Stryker (SYK) in its knee-products unit, Novarro said. Global spine-product sales declined 7%. It's losing share in its U.S. spine-product segment, which benefits NuVasive (NUVA) and K2M Group (KTWO). This also suggests continued weak growth in the quarter for the U.S. spine-product market.
Separately, it looks like J&J lost some share of the U.S. trauma-product market to Stryker, though worldwide sales grew 2.1%.
Intuitive Surgical (ISRG) and Medtronic (MDT) are taking pieces of J&J's surgery unit, Novarro said.

Return to headline | Return to top
Johnson & Johnson: Amazing Company, But There Is Something Wrong

| Seeking Alpha

Investment Thesis
I’ll tell you right upfront: I love Johnson & Johnson (JNJ). It was one of my first picks when I started building my dividend portfolio. In all honesty, I think this stock is a keeper for life.
The company has more brands than you can count and each of them is worth hundreds of millions of dollars (when they aren’t worth billions). About 1/6 of its revenue comes from repeating sales in consumer products while it finds strong growth among pharmaceutical products.
Johnson & Johnson is among the rare companies to be part of the Dividend King list (with 50+ years of dividend increases). This morning, it published its latest revenues with both revenues and earnings beat. Unfortunately, there is something wrong with this company. Let’s find out what’s not to like about JNJ.Understanding the Business
While I’m sure each household has at least one product from JNJ in its bathroom, the company is more a healthcare company than a consumer goods manufacturer.
Its business model is based on a steady cash flow generation coming from both consumer sales and medical devices sales. This gives JNJ some kind of protection against recessions or any possible economic downturns.
But the real growth vector is found in the pharmaceutical segment. Strong with $9.7 billion in sales (up 15.4%) this quarter, JNJ’s pharmaceutical division produces a wide variety of speciality drugs such as Remicade (immunology) and Stelara (psoriasis). Some speciality drugs are harder to replicate which lower the effect of expiring patents.Revenues
In regards to JNJ Q3 revenues, 52% are from the U.S. ($10.3 billions) and 48% are from outside the country including 22% from Europe. The company showed revenue growth of 10.3% this quarter, 3.8% if we exclude revenue coming from acquisitions. In other words: JNJ is growing from right, left, and center at the same time.
Earnings
On the earning’s side, news were also positive. Adjusted EPS was up by 13% at $1.90, beating expectations by $0.10. Then again, the earnings growth came from the pharmaceutical department. Earlier this year, JNJ announced the acquisition of Actelion in a $30 billion cash deal. This was another effort from JNJ to diversify its drugs products with more high-margin medicines for rare diseases.
Dividend Growth Perspective
Johnson & Johnson is what I consider one of the “mothers of dividend stocks” with 54 consecutive years with a dividend increase. JNJ is part of all elite groups such as the Dividend King, Dividend Aristocrats, and Dividend Achievers list. The Dividend Achievers Index refers to all public companies that have successfully increased their dividend payments for at least ten consecutive years. At the time of writing this article, there were 265 companies that achieved this milestone.
Since 2012, the stock yield never stopped going down while the dividend kept hiking to new highs. At a yield around 2.50%, many high yielding seeking tend to forget about this super-powered dividend-growth company.
After increasing its payment by 37.70% over the past 5 years, JNJ payout and cash payout ratios are still under control. Management benefit from enough room for future increases. JNJ meets my 7 dividend growth investing principles.
Potential Downsides
Now that I’ve painted a pretty nice picture of JNJ, it’s time to bring you down to earth. As I mentioned in my introduction, I think JNJ is a keeper for life in my portfolio. However, there is something wrong with this company. What is wrong is its valuation.
As a shareholder, I’m not complaining as I show not only ever growing dividends, but also a healthy paper profit. However, the fact the stock jumped by another 20% this year is a sign that investors are overly hyped about JNJ performances. The potential downside I see in this situation is virtually no stock appreciation in the next 2-3 years. As you will discover in the last section of this article: JNJ is currently overvalued.
Valuation
Let’s start with JNJ's PE history. This tells you how the market values the stocks through various situations:
Over the past decade, the valuation has rarely been this high. Paying 23 times the earnings for a mature company in which growth highly depends on its future drug blockbuster (which we never know when they happen) is a bit too much for my taste.
Digging deeper, I’ve used the dividend discount model to determine what should be the JNJ price at the moment. It appears that even when I use generous dividend growth rates, I’m getting close to a 10% premium on the current price.
Final Thought
JNJ is part of the core of my portfolio and it will remain there. From its latest earnings, I don’t see any problems keeping my shares going forward. However, I will not expect JNJ to drive growth in my portfolio. Its place is more like a bond; it will continue to pay a steady yield in the future. If you are not a JNJ shareholder yet, I feel sorry for you. However, now is probably not the best time to buy it.
Disclaimer: I do hold JNJ in my DividendStocksRock portfolios.
If you like my analysis, click on FOLLOW at the top of the article near my name. That will allow my articles to display on your homepage as they are published.
Additional disclosure: The opinions and the strategies of the author are not intended to ever be a recommendation to buy or sell a security. The strategy the author uses has worked for him and it is for you to decide if it could benefit your financial future. Please remember to do your own research and know your risk tolerance.
Disclosure: I am/we are long JNJ.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Return to headline | Return to top

Broadcast Media Coverage

Dominic Caruso Interview

Oct 17, 2017 | CNBC Squawk Box

https://app.criticalmention.com/app/#clip/view/30140819?token=c4bed28a-583e-4cc9-bdc1-796d91f33a0e

Return to headline | Return to top
Dominic Caruso Interview

Oct 17, 2017 | Bloomberg Daybreak Americas

https://app.criticalmention.com/app/#clip/view/30140851?token=c4bed28a-583e-4cc9-bdc1-796d91f33a0e

Return to headline | Return to top
Jim Cramer discusses JNJ guidance raise

Oct 17, 2017 | CNBC Squawk Box

https://app.criticalmention.com/app/#clip/view/30143344?token=5df66f0b-fecc-4a5e-93ef-87e7a24b4ccb

Return to headline | Return to top
Jim Cramer on JNJ earnings beats

| CNBC Squawk on the Street

https://app.criticalmention.com/app/#clip/view/30148876?token=5df66f0b-fecc-4a5e-93ef-87e7a24b4ccb

Return to headline | Return to top
Meg Tirrell on JNJ Earnings and Talc Lawsuits

Oct 17, 2017 | CNBC Power Lunch

https://app.criticalmention.com/app/#clip/view/30148622?token=5df66f0b-fecc-4a5e-93ef-87e7a24b4ccb

Return to headline | Return to top
Mad Money

Oct 18, 2017 | CNBC Mad Money

https://app.criticalmention.com/app/#clip/view/30159388?token=a1186a4a-dfd9-462e-b453-dd73a1ab85ce

Return to headline | Return to top

Add recipients

Suggested