Johnson & Johnson
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.
Gross margins dropped, operating margins grew, net margins shrank.
Johnson & Johnson notched revenue of $17.05 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $17.01 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $16.01 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 $1.25. The 19 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. GAAP EPS of $1.05 for Q3 were 8.7% lower than the prior-year quarter's $1.15 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 67.2%, 110 basis points worse than the prior-year quarter. Operating margin was 25.2%, 70 basis points better than the prior-year quarter. Net margin was 17.4%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.59 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $67.26 billion. The average EPS estimate is $5.09.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 13,571 members out of 14,063 rating the stock outperform, and 492 members rating it underperform. Among 3,253 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,184 give Johnson & Johnson a green thumbs-up, and 69 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 $73.88.
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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 recommend 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.