Johnson & Johnson’s 3Q17 Revenue Estimates Could Reveal Growth

Johnson & Johnson’s (JNJ) revenues are expected to report 8.3% growth to $19.3 billion during 3Q17. The chart below shows its actual revenues and analysts’ estimates since 3Q15, as well as its estimates for 3Q17.

Johnson & Johnson operates three business segments:

• Pharmaceuticals
• Consumer
• Medical Devices

The Pharmaceuticals segment is the largest revenue contributor for Johnson & Johnson, with contributions exceeding 45% of total revenues. The Pharmaceuticals segment is expected to report growth in revenues at constant exchange rates during 3Q17.

This growth takes into account the strong performance of Imbruvica, Stelara, Xarelto, Invega Sustenna, Xeplion, and Edurant. It is partly offset by the expected lower sales of hepatitis C products during 3Q17.

The Consumer segment is expected to report revenue growth at constant exchange rates during 3Q17. This growth is due to the expected growth considering the strong performance of three franchises: 

• Wound Care
• Beauty Products
• Over-the-Counter

The Consumer segment’s growth is partially offset by lower sales in the following franchises:

• Baby Care
• Oral Care
• Women’s Health

The Medical Devices Segment is expected to report growth in revenues at constant exchange rates during 3Q17. This growth would be due to the strong performance of advanced surgery, cardiovascular, vision care, and hips, knees, and trauma products. This growth would be partially offset by lower sales of diabetes products.

We’ll discuss the company’s key products later in this series.

The Vanguard Health Care ETF (VHT) holds 10.1% of its total assets in Johnson & Johnson (JNJ). VHT also holds 4.9% of its total assets in Merck & Co. (MRK), 2.7% in Bristol-Myers Squibb (BMY), and 2.4% of its total assets in Abbott Laboratories (ABT).