Johnson & Johnson
The 10-second takeaway
For the quarter ended June 30 (Q2), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Margins increased across the board.
Johnson & Johnson logged revenue of $17.88 billion. The 16 analysts polled by S&P Capital IQ expected to see a top line of $17.71 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.48 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.48. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.39 per share. Non-GAAP EPS of $1.48 for Q2 were 14% higher than the prior-year quarter's $1.30 per share. GAAP EPS of $1.32 for Q2 were 164% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.3%, 50 basis points better than the prior-year quarter. Operating margin was 28.3%, 40 basis points better than the prior-year quarter. Net margin was 21.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $17.53 billion. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $70.83 billion. The average EPS estimate is $5.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 13,480 members out of 13,986 rating the stock outperform, and 506 members rating it underperform. Among 3,301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,230 give Johnson & Johnson a green thumbs-up, and 71 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Johnson & Johnson is outperform, with an average price target of $89.29.
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