Johnson & Johnson
The 10-second takeaway
For the quarter ended June 30 (Q2), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Margins increased across the board.
Johnson & Johnson logged revenue of $17.88 billion. The 16 analysts polled by S&P Capital IQ expected to see a top line of $17.71 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.48 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 $1.48. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.39 per share. Non-GAAP EPS of $1.48 for Q2 were 14% higher than the prior-year quarter's $1.30 per share. GAAP EPS of $1.32 for Q2 were 164% higher than the prior-year quarter's $0.50 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 69.3%, 50 basis points better than the prior-year quarter. Operating margin was 28.3%, 40 basis points better than the prior-year quarter. Net margin was 21.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $17.53 billion. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $70.83 billion. The average EPS estimate is $5.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 13,480 members out of 13,986 rating the stock outperform, and 506 members rating it underperform. Among 3,301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,230 give Johnson & Johnson a green thumbs-up, and 71 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 $89.29.
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 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 January 01 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.