Johnson & Johnson Stock Remained Neutral to 2Q15 Earnings



A look at Johnson & Johnson’s earnings

Due to the decelerating revenue growth over all segments, Johnson & Johnson (JNJ) reported a decrease in its top line by ~8.8% in its 2Q15 earnings release on July 14, 2015.

The company surpassed Wall Street analysts’ 2Q15 estimates for revenues, operating income, and EPS (earnings per share). However, the share price remained neutral and fell ~0.5% to close at $99.78 post earnings release for the second quarter.

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Johnson & Johnson’s stock value has fallen ~13% year-to-date, which is lower than the Health Care Select Sector SPDR ETF’s (XLV) return of ~4.6%. XLV invests 9.5% of its portfolio in Johnson & Johnson, 3.6% in Bristol Myers Squibb (BMY), 5.9% in Gilead Sciences (GILD), and 4.61% in Amgen (AMGN). Investors can find out earnings for other companies on our Earnings Overview page.

2Q15 performance

Johnson & Johnson’s top line fell by ~8.8% to $17.8 billion for 2Q15, driven by an operational decline of 0.9% and the negative currency impact of 7.9%. At constant exchange rates, consumer healthcare segment revenues rose by 2.3% in 2Q15, pharmaceutical segment revenues rose 1%, and medical devices segment revenues fell 4.7% in 2Q15.

Geographically, US markets contributed nearly 50% of total revenues at $8.9 billion for 2Q15, a decrease of 2.4% in revenues compared to 2Q14. In the international markets, Europe contributed 23.6% of total revenues at $4.2 billion for 2Q15, an increase of 1% compared to 2Q14. Asia Pacific and African markets contributed 18% of total revenues at $3.2 billion for 2Q15, an increase of 2.2% over 2Q14. The Western hemisphere, excluding the United States, contributed 8.4% of total revenues at $1.5 billion for 2Q15, a fall of 4% over 2Q14.

Company overview

Johnson & Johnson (JNJ), established in 1886, is one of the largest pharmaceutical and healthcare companies. With headquarters in New Brunswick, New Jersey, the company has operational presence in more than 60 countries and products supplied to more than 200 countries worldwide. You can read more about this in our series Investing in Johnson & Johnson: What you should know.


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