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How Are Johnson & Johnson’s Revenues Trending?

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Johnson & Johnson’s revenues

Johnson & Johnson (JNJ) reported revenues of $18.8 billion in 2Q17, a 2% increase as compared to revenues of $18.5 billion in 2Q16.

The above chart shows revenues for Johnson & Johnson over the last few quarters and estimates for 3Q17. Nearly 50% of total revenues came from international markets, so the company is exposed to significant currency risk.

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Estimates for 3Q17

Wall Street analysts estimate revenue of $19.3 billion for 3Q17, an 8.3% increase as compared to $17.8 billion during 3Q16.

Revenues in 2Q17

Johnson & Johnson reported revenues of $18,839 million during 2Q17, a 1.9% increase as compared to 2Q16. The growth in revenues was 2.9% at constant exchange rates, offset by a 1% negative impact of foreign exchange.

At constant exchange rates, the pharmaceuticals segment reported a 1% increase, while the consumer segment reported a 2.3% increase, and the medical devices segment reported a 5.9% increase during 2Q17 as compared to 2Q16. We’ll discuss details about the performance of each segment later in the series.

The US markets reported an increase of 1.6% in revenues to $9.7 billion during 2Q17. The US markets contribute over 51% of total revenues for Johnson & Johnson. The 2Q17 revenues for markets outside the US were $9.1 billion. The revenues from outside the US markets rose 4.4% during 2Q17 at constant exchange rates, partly offset by a 2.1% negative impact of foreign exchange.

To divest company-specific risks, investors can consider ETFs like the PowerShares Dynamic Pharmaceuticals ETF (PJP), which holds 4.6% of its total assets in Johnson & Johnson. PJP also holds 5.6% in AbbVie (ABBV), 5.0% in Bristol-Myers Squibb (BMY), and 2.9% in Biogen (BIIB).

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