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Analysts’ Estimates for Johnson & Johnson after 4Q17

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Analysts’ estimates

Johnson & Johnson (JNJ) surpassed the estimates for EPS (earnings per share) and revenues in 4Q17, reporting EPS of $1.74 on revenues of ~$20.2 billion. Analysts’ estimate for EPS was ~$1.72 on revenues of $20.1 billion. In 2017, EPS was $7.30 on revenues of ~$76.5 billion, a 6.3% growth compared to ~$71.9 billion in 2016.

The above chart compares reported EPS and estimated EPS over the last three years. For 1Q18, Wall Street analysts are estimating EPS of $2.01 on revenues of ~$19.4 billion, a 9.2% revenue growth compared to ~$17.8 billion in 1Q17.

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Annual estimates

Analysts are estimating EPS of $8.01 on revenues of ~$80.9 billion for 2018. That would be a 5.8% revenue growth compared to ~$76.5 billion for 2017.

The growth in revenues would be driven by the strong performances of new products as well as some existing immunology products, cardiovascular and metabolics products, and oncology products from the Pharmaceutical segment; orthopedic products, general and advanced surgery products and vision care products from the Medical Devices segment; over-the-counter products, beauty care products, and women’s health products from the Consumer segment.

Its gross profit margin is expected to increase to ~69.8% in 2018 compared to ~64.9% in 2017. Its EBITDA (earnings before interest, tax, depreciation, and amortization) margin is expected to be ~$37.2% in 2018, and its net profit margin is expected to improve marginally to ~26.9% compared to ~26.2% in 2017.

The iShares US Pharmaceuticals (IHE) has 9.7% of its total investments in Johnson & Johnson (JNJ), 6.9% in Bristol-Myers Squibb (BMY), 5.4% in Eli Lilly (LLY), and 3.9% in Mylan (MYL).

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