Johnson & Johnson
The 10-second takeaway
For the quarter ended April 3 (Q1), Johnson & Johnson met expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Gross margin shrank, operating margin dropped, and net margin grew.
Johnson & Johnson logged revenue of $16.14 billion. The 16 analysts polled by S&P Capital IQ hoped for a top line of $16.28 billion on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $16.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.37. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.35 per share on the same basis. GAAP EPS of $1.41 for Q1 were 13% higher than the prior-year quarter's $1.25 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 69.5%, 100 basis points worse than the prior-year quarter. Operating margin was 28.3%, 10 basis points worse than the prior-year quarter. Net margin was 24.2%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $16.76 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $67.04 billion. The average EPS estimate is $5.12.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 3,183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,117 give Johnson & Johnson a green thumbs-up, and 66 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 $71.15.
The drug and healthcare 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 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 and 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.
More from The Motley Fool
Is Johnson & Johnson a Buy?
Is now a good time to invest in the healthcare titan's stock?
Better Stock: AbbVie Inc (ABBV) vs. Johnson & Johnson (JNJ)
It's a close contest, but there is one deciding factor.
3 Dividend Stocks Ideal for Retirees
Find out why these three stocks are a perfect fit for investors looking to boost their income stream.