Johnson & Johnson
The 10-second takeaway
For the quarter ended March 31 (Q1), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share shrank.
Margins dropped across the board.
Johnson & Johnson notched revenue of $17.51 billion. The 15 analysts polled by S&P Capital IQ foresaw a top line of $17.43 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.14 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 $1.44. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.40 per share. Non-GAAP EPS of $1.44 for Q1 were 5.1% higher than the prior-year quarter's $1.37 per share. GAAP EPS of $1.22 for Q1 were 13% lower than the prior-year quarter's $1.41 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 68.3%, 120 basis points worse than the prior-year quarter. Operating margin was 28.2%, 10 basis points worse than the prior-year quarter. Net margin was 20.0%, 420 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $17.80 billion. On the bottom line, the average EPS estimate is $1.39.
Next year's average estimate for revenue is $71.11 billion. The average EPS estimate is $5.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 13,522 members out of 14,016 rating the stock outperform, and 494 members rating it underperform. Among 3,385 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,317 give Johnson & Johnson a green thumbs-up, and 68 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 $79.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. 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 recommends Johnson & Johnson and recommends the following options:Long Jan 2014 $50 Calls on Johnson & Johnson. The Motley Fool owns shares of 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.