Consumer segment

Johnson & Johnson (JNJ) is scheduled to report its third-quarter earnings on October 16. The company’s second-quarter growth in its Consumer business was below expectations. However, it expects to accelerate the segment’s growth in the second half of the year, driven mainly by the introduction of new products. The company’s other two business segments are Pharmaceuticals and Medical Devices.

Johnson & Johnson’s Consumer business consists of a range of products across its baby care, oral care, women’s health, beauty, wound care, and over-the-counter franchises. The segment generates the majority of its sales from the beauty and over-the-counter franchises.

JNJ’s Consumer Business Expected to Be Driven by Innovation

Major growth drivers for Johnson & Johnson’s Consumer business

In the third quarter, Johnson & Johnson (JNJ) is expected to deliver improved performance, mainly driven by innovation-led growth. The company registered sales of $3.5 billion, representing YoY (year-over-year) adjusted operational sales growth of ~0.9% in the second quarter. Excluding the impact of acquisitions and divestitures, the consumer segment’s YoY operational sales declined ~0.4%.

Johnson & Johnson witnessed declining sales in its baby care franchise in the first quarter due to increased competition and reduction in restocking and discounts ahead of the relaunch of its baby care line. Johnson & Johnson started shipments of its revamped baby care line in July, which is expected to register improved performance in the third quarter. The company’s increased investments in the last few quarters for increasing market penetration of its consumer brands are expected to yield positive results.

The iShares Core S&P 500 ETF (IVV) invests 1.5% of its total portfolio holdings in Johnson & Johnson. Peers Medtronic (MDT), Abbott Laboratories (ABT), and Procter & Gamble (PG) make up 0.54%, 0.52%, and 0.84%, respectively, of IVV’s total holdings.

Check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!

Latest articles

23 Jul

Google Ups the Ante for Ad Targeting

WRITTEN BY Ruchi Gupta

Google has announced that it's going to start adding third-party ad targeting and browser privacy restrictions to Google Chrome.

23 Jul

Will Fortinet Beat Q2 Earnings Estimates?

WRITTEN BY Aditya Raghunath

Leading cybersecurity company Fortinet (FTNT) is scheduled to announce its second-quarter earnings results on August 1. What should we expect?

Harley-Davidson’s Q2 earnings were slightly better than estimates.

Netflix (NFLX) has long relied on international markets to drive its streaming video business growth.

23 Jul

Could Ford’s Q2 Earnings Push Its Stock Even Higher?

WRITTEN BY Mohit Oberoi, CFA

Ford's second-quarter earnings results are scheduled for release on July 24. So far, Ford stock has outperformed its legacy peers.

23 Jul

Why RBC Isn't Optimistic about BlackBerry Stock

WRITTEN BY Aditya Raghunath

Shares of BlackBerry (BB) have been volatile over the last 12 months. BlackBerry stock fell 40.5% from $12.0 in September 2018 to $6.57 in December.