J&J (JNJ) Beats on Q4 Earnings, Sales Miss; Stock Down

Johnson & Johnson JNJ , the bellwether of healthcare companies, has a strong presence in the pharmaceutical, medical devices and consumer care markets across the world. This New Jersey-based company is well known for its baby-care products and brands like Tylenol in addition to drugs like Remicade and Concerta.

However, like many of its peers, JNJ is facing generic competition and pricing pressure for some of the products in its pharmaceutical segment. JNJ also had issues with its consumer segment manufacturing facilities.

In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential as well as the performance of new products apart from the usual top-and bottom-line numbers.

JNJ has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 2.47%. Estimates have declined slightly over the past 7 days.

Johnson & Johnson Price

Johnson & Johnson Price | Johnson & Johnson Quote

Currently, JNJ has a Zacks Rank #3 (Hold), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: JNJ beat on fourth quarter earnings - the company reported EPS of $1.58 while our consensus called for EPS of $1.56.

Revenues Miss: Revenues were, however, slightly below expectations. Johnson & Johnson posted revenues of $18.11 billion, compared to our consensus estimate of $18.12 billion.

2017 Guidance: J&J issued sales and earnings guidance for 2017, which was in-line with expectations. J&J expects adjusted earnings per share in the range of $6.93 to $7.08 per share in 2017. The Zacks Consensus Estimate stood at $7.06 per share.

The revenue guidance for 2017 was in the range of $74.1 billion to $74.8 billion. The Zacks Consensus Estimate stood at $74.61 billion.

Stock Price Impact: Shares declined around 1.7% in pre-market trading .

Check back later for our full write up on this JNJ earnings report later!

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Johnson & Johnson (JNJ): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

Earnings Investing Stocks

Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More