Johnson & Johnson
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and earnings per share dropped significantly.
Margins dropped across the board.
Johnson & Johnson tallied revenue of $16.3 billion. The 18 analysts polled by S&P Capital IQ predicted sales of $16.3 billion. Sales were 3.9% higher than the prior-year quarter's $15.6 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.13. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.09 per share on the same basis. GAAP EPS of $0.08 for Q4 were 89% lower than the prior-year quarter's $0.70 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 67.2%, 60 basis points worse than the prior-year quarter. Operating margin was 20.3%, 170 basis points worse than the prior-year quarter. Net margin was 1.3%, 1,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.5 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $68.5 billion. The average EPS estimate is $5.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 13,482 members out of 13,964 rating the stock outperform, and 482 members rating it underperform. Among 3,306 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,246 give Johnson & Johnson a green thumbs-up, and 60 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 $71.53.
The drug and health-care investing landscape is littered with also-rans and a few major winners. Is Johnson & Johnson the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Johnson & Johnson to My Watchlist.
Seth Jayson owned shares of the following at the time of publication: Johnson & Johnson. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson, as well as creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.