Johnson & Johnson
The 10-second takeaway
For the quarter ended July 1 (Q2), Johnson & Johnson met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank significantly.
Gross margins dropped, operating margins grew, and net margins dropped.
Johnson & Johnson booked revenue of $16.48 billion. The 17 analysts polled by S&P Capital IQ predicted revenue of $16.72 billion on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $16.60 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 $1.30. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.29 per share. GAAP EPS of $0.50 for Q2 were 50% lower than the prior-year quarter's $1.00 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 68.8%, 60 basis points worse than the prior-year quarter. Operating margin was 27.9%, 130 basis points better than the prior-year quarter. Net margin was 8.5%, 820 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.97 billion. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $67.38 billion. The average EPS estimate is $5.09.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 13,566 members out of 14,053 rating the stock outperform, and 487 members rating it underperform. Among 3,350 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,284 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 $71.47.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Johnson & Johnson. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." 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. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.