On Jan. 23, Johnson & Johnson (NYSE:JNJ) released full-year earnings for FY 2006. The numbers held few surprises:

  • Revenues of $53.3 billion, and earnings per share of $3.73, were very close to expectations. Taking into account one-time items from its acquisition of Pfizer's (NYSE:PFE) consumer products division and the Guidant breakup fee, earnings per share were $3.76 for the year.
  • Gross and operating margins declined slightly, but both are still very healthy, and nothing to complain about.
  • Sales growth in the company's consumer products division was 7.5% overall, driven by 10.9% growth in international markets. That's very strong performance, especially considering that the acquisition of Pfizer's consumer-products business did not close until December.
  • JNJ is the fifth-most rated stock in Motley Fool CAPS, with a solid four-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2006

FY 2005

Change

Sales

$53,330

$53,324

$50,514

5.6%

Net Profit

--

$11,053

$10,060

9.9%

EPS

$3.74

$3.73

$3.35

11.3%

Diluted Shares

--

2,961

3,003

(1.4%)



Get back to basics with a look at the income statement.

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

71.76%

72.38%

(0.62)

Operating Margin

24.66%

24.68%

(0.02)

Net Margin

20.73%

19.92%

0.81

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet and Cash Flow Highlights
There's no Band-Aid for this boo-boo: The company declined to provide either a balance sheet or a cash flow statement.

Learn the ways of the balance sheet. Then, find out why Fools always follow the money.

Related Companies:

  • AstraZeneca (NYSE:AZN)
  • Novartis (NYSE:NVS)
  • Abbott Laboratories (NYSE:ABT)
  • Boston Scientific (NYSE:BSX)
  • Procter & Gamble (NYSE:PG)

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Johnson & Johnson is a Motley Fool Income Investor selection, while Pfizer is a Motley Fool Inside Value pick. Try any of our Foolish newsletters free for 30 days.

At the time of publication, Nathan Parmelee owned shares of Johnson & Johnson. Fool rules are here.