Johnson & Johnson’s 4Q17 Earnings on January 23: What to Expect


Jan. 19 2018, Published 8:04 a.m. ET

A look at Johnson & Johnson’s estimates

Johnson & Johnson (JNJ), one of the largest pharmaceutical companies by revenue, is set to release its 4Q17 and 2017 earnings on January 23, 2018.

The above chart compares the revenues and earnings per share for Johnson & Johnson over the last eight quarters with estimates for 4Q17.

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Analyst estimates

Wall Street analysts estimate EPS (earnings per share) of $1.72 at revenues of $20.1 billion for 4Q17. For 2017, analysts are estimating EPS of $7.28 on revenues of $76.3 billion.

Revenue estimates

Analysts expect Johnson & Johnson’s revenues for 4Q17 to increase by 10.9% to $20.1 billion compared to $18.1 billion for 4Q16. Revenues for the year are estimated to increase 6.2% to $76.3 billion compared to $71.9 billion in 2016.

Profitability estimates

Analysts’ estimates show a gross profit margin of 69.7% for 4Q17, a marginal increase compared to 4Q16. Due to lower R&D (research and development) expenses and lower SG&A (selling, general, and administrative) expenses, JNJ’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin is expected to increase by 4.9% to 37.5% in 4Q17 compared to 32.6% in 4Q16. Its net adjusted income is expected to increase to $4.7 billion in 4Q17 compared to $4.4 billion in 4Q16.

For 2017, its gross margin is expected to decrease to 69.3% compared to 69.8% in 2016. Its EBITDA margin is expected to marginally decrease to 35.5% in 2017 compared to 35.6% in 2016. Net adjusted income is expected to increase to $20 billion in 2017 compared to $18.8 billion in 2016.

The iShares US Healthcare ETF (IYH) holds 11.3% of its total investments in Johnson & Johnson (JNJ), 4.6% in Merck & Co. (MRK), 6.3% in Pfizer (PFE), and 3% in Bristol-Myers Squibb (BMY).


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