A look at Johnson & Johnson’s earnings

Johnson & Johnson (JNJ) reported a fall in its top line by ~7.4% in its 3Q15 earnings on October 13, 2015. The company surpassed Wall Street Analysts’ 3Q15 estimates for earnings-per-share or EPS. However, the share price remained neutral and fell by ~0.5% to the close price of $95.45 post earnings release for the third quarter.

Johnson & Johnson’s stock value has fallen by ~6.2% year-to-date, which is lower than the VanEck Vectors Pharmaceutical ETF (PPH) return of ~2.6%. PPH invests 7.4% of its portfolio in Johnson & Johnson, 7.9% in Novartis AG (NVS), 5.6% in Pfizer (PFE), and 5.0% in Merck and Co. (MRK). Investors can refer earnings of other companies on our pharmaceutical earnings overview page.

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 3Q15 performance

Johnson & Johnson’s top line fell by ~7.4% at $17.1 billion for 3Q15, driven by an operational increase of 0.8% and the negative currency impact of 8.2%. At constant exchange rates, the consumer healthcare segment revenues grew by 3.1%, while the pharmaceutical segment’s revenues fell by 0.3% and the medical devices segment’s revenues grew by 0.9% during 3Q15.

Geographically, US markets contributed nearly 51.4% of total revenues at $8.8 billion for 3Q15, a fall of 0.6% in revenues as compared to 3Q14. In the International markets, Europe contributed 22.2% of total revenues at $3.8 billion for 3Q15, a rise of 2.7% as compared to 3Q14. The Asia-Pacific and Africa markets contributed 17.5% of total revenues at $3.0 billion for 3Q15, a rise of 1.2% over 3Q14, and the Western hemisphere (excluding the United States) contributed 8.8% of total revenues at $1.5 billion for 3Q15, a rise of 2.7% over 3Q14.

Company overview

Johnson & Johnson, established in 1886, is one of the largest pharmaceuticals and healthcare companies in the world. With headquarters in New Brunswick, New Jersey, the company has an operational presence in more than 60 countries and supplies products to over 200 countries worldwide. Further details can be learned in the article Investing in Johnson & Johnson: What you should know.

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