Johnson & Johnson’s Quarterly Revenue Trend in 2017

As we discussed earlier in this series, Johnson & Johnson (JNJ) reported 11.5% growth in its revenues to ~$20.2 billion in 4Q17, compared to revenues of ~$18.1 billion in 4Q16. The chart below shows Johnson & Johnson’s quarterly revenues for 2017.

In 4Q17, Johnson & Johnson (JNJ) surpassed Wall Street analysts’ estimates for EPS (earnings per share). JNJ reported EPS of $1.74 in 4Q17 compared to its estimated EPS of $1.72. The company surpassed analysts’ estimates for revenues and reported revenues of $20.2 billion, compared to the estimate of $20.1 billion. 

Johnson & Johnson’s revenue growth for 4Q17 includes a 9.4% increase in revenues at constant exchange rates and a 2.1% increase in revenues due to the favorable impact of foreign exchange.

This growth in revenues was driven by strong performance across its business segments in 4Q17. The Pharmaceutical segment’s revenue growth was driven by the strong performance of Darzalex, Edurant, Imbruvica, Invega Sustenna, Prezista/Prezcobix, Simponi/Simponi Aria, Stelara, Xarelto, Zytiga, and pulmonary hypertension products. 

The Medical Devices segment’s revenue growth was driven by the strong performance of cardiovascular products; hips, knees, and trauma products; general and advanced surgery products; and contact lenses. 

The Consumer Healthcare segment’s revenue growth was driven by the strong performance of beauty products, over-the-counter products, and wound care products.

For fiscal 2017, Johnson & Johnson reported EPS of $7.30 on revenues of ~$76.5 billion, representing 6.3% growth compared to revenues of ~$71.9 billion in 2016. This growth includes 6.0% growth in operating revenues and a 0.3% favorable impact of foreign exchange in 2017.

The iShares Global Healthcare ETF (IXJ) holds 7.5% of its total investments in Johnson & Johnson (JNJ), 4.6% in Pfizer (PFE), 3.2% in Merck & Co. (MRK), and 4.6% in Novartis AG (NVS).