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Analyzing Johnson & Johnson’s Segment-Wise Performance in 1Q18

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Segment-wise performance

Johnson & Johnson (JNJ) reported 8.4% growth in operating revenues and a 4.2% positive impact of foreign exchange to $20.0 billion in 1Q18 as compared to revenues of $17.8 billion during 1Q17. Johnson & Johnson reported growth across all three of its segments: the pharmaceutical segment, the consumer health segment, and the medical devices segment.

The above chart shows revenues for each of Johnson & Johnson’s business segments since 1Q17.

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Segment-wise revenues

The Pharmaceuticals segment reported growth of 19.4% in revenues to $9.8 billion during 1Q18 as compared to $8.2 billion during 1Q17. The revenues increased 15.1% at constant exchange rates, while foreign exchange had a 4.3% positive impact on revenues during 1Q18. The growth was driven by Stelara and Simponi/Simponi Aria from the immunology franchise, Edurant and Prezista/Prezcobix/Rezolsta/Symtuza from the infectious diseases franchise, Invega Sustenna/Xeplion/Trinza/Trevicta from the neuroscience franchise, Darzalex, Imbruvica, Velcade, and Zytiga from the oncology franchise, Xarelto and Procrit/Eprex from the cardiovascular franchise, and pulmonary hypertension products.

The consumer segment reported growth of 5.3% in revenues to $3.4 billion during 1Q18 as compared to $3.2 billion during 1Q17. Revenues rose 1.3% at constant exchange rates, while foreign exchange had a 4.0% positive impact on the revenues for the consumer segment. The revenue growth was driven by the strong performance of baby care products, beauty products, oral care products, over-the-counter products, and women’s health products, partially offset by lower sales of wound care products during 1Q18.

The medical devices segment reported growth of 7.5% in revenues to $6.8 billion during 1Q18 as compared to $6.3 billion during 1Q17. The revenues rose 3.2% at constant exchange rates, while the foreign exchange had a 4.3% positive impact on revenues for the medical devices segment. The 1Q18 growth for the medical devices segment was driven by the strong performance of the following:

  • interventional solutions
  • hip and trauma products from the orthopedic products portfolio
  • surgery products
  • vision care products

After excluding the impact of acquisitions and divestitures, the pharmaceutical segment reported growth of 7.5% in worldwide sales, the consumer segment reported growth of 2.0% in worldwide sales, while the medical devices segment reported growth of 1.1% in worldwide sales.

The First Trust NASDAQ Pharmaceuticals ETF (FTXH) holds 7.9% of its total investments in Johnson & Johnson (JNJ), 8.1% in Pfizer (PFE), 6.3% in Bristol-Myers Squibb (BMY), and 4.1% in Eli Lilly (LLY).

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