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A Performance Overview of Johnson & Johnson

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Nov. 20 2020, Updated 3:20 p.m. ET

Revenue trends

Johnson & Johnson (JNJ), which reported its third-quarter earnings results on October 16, generated net revenue of $20.3 billion in the quarter compared to $19.7 billion in the third quarter of 2017, reflecting a ~3.6% YoY (year-over-year) rise.

In the third quarter, in the US market, Johnson & Johnson generated revenue of $10.7 billion compared to $10.3 billion in the third quarter of 2017, reflecting a rise of ~3.6% YoY. In the quarter, in the international market, Johnson & Johnson generated revenue of $9.7 billion, reflecting a rise of ~3.6% YoY.

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In the third quarter, Johnson & Johnson’s Consumer, Pharmaceutical, and Medical Devices segments reported revenues of $3.4 billion, $10.3 billion, and $6.6 billion, respectively, compared to $3.4 billion, $9.7 billion, and $6.6 billion, respectively, in the third quarter of 2017. To know more about the trends in Johnson & Johnson’s Medical Devices segment, read An Overview of Johnson & Johnson’s Medical Devices Business.

Johnson & Johnson’s Consumer and Pharmaceutical segments saw ~1.8% and ~6.7% YoY rises, respectively, in the third quarter of 2018. To know more about Johnson & Johnson’s Consumer segment, read A Performance Overview of Johnson & Johnson’s Consumer Segment.

Johnson & Johnson’s gross profit grew from $12.7 billion in the third quarter of 2017 to $13.8 billion in the third quarter of 2018, reflecting an ~8.1% YoY rise.

The company’s revenue growth could boost the share price of the Health Care Select Sector SPDR ETF (XLV). Johnson & Johnson makes up ~10.33% of XLV’s total portfolio holdings.

Expense trends

Johnson & Johnson had a cost of product sales of $6.6 billion in the third quarter compared to $5.4 billion in the third quarter of 2017, reflecting 2.2% YoY growth.

In the quarter, the company reported SM&A (selling, marketing, and administrative) and R&D (research and development) expenses of $5.5 billion and $2.5 billion, respectively, compared to $5.4 billion and $2.6 billion, respectively, in the third quarter of 2017.

Earnings trends

Johnson & Johnson reported net earnings of $3.9 billion in the third quarter, reflecting a ~4.5% YoY rise. In the third quarter, the company generated diluted EPS of $1.44 compared to $1.37 in the third quarter of 2017, reflecting a ~5.1% YoY rise.

Johnson & Johnson’s biopharmaceutical peers Abbott Laboratories (ABT) and Novartis (NVS) generated revenues of $7.7 billion and $12.8 billion, respectively, in the third quarter.

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