What to Expect from Johnson & Johnson’s 4Q15 Earnings

By Mike Benson

A look at Johnson & Johnson’s estimates

Headquartered in New Brunswick, New Jersey, Johnson & Johnson (JNJ) is one of the largest pharmaceuticals and healthcare companies. The company operates in more than 60 countries and supplies products to over 200 countries.

Johnson & Johnson is set to release its 4Q15 and full-year 2015 earnings on January 26, 2016. Analysts estimate EPS (earnings per share) of $1.42 for 4Q15. Johnson & Johnson’s stock has returned nearly 1.2% year-to-date while competitors Sanofi (SNY), Merck (MRK), and Novartis AG (NVS) have returned ~0.5%, -4.4%, and -3.5%, respectively. The iShares US Pharmaceuticals ETF (IHE) has returned ~9.5% during the same period.

4Q15 revenue estimates

Analysts estimate that 4Q15 revenues will decrease by ~2% to ~$17.9 billion as compared to 4Q14. Analysts expect to see an operational increase in revenues that will be more than offset by the negative currency impact. The net adjusted income is expected to increase by ~9.8% to ~$4.0 billion in 4Q15 as compared to 4Q14.

As per the company’s financial guidance for 2015, it estimates revenue between $70.0 billion and $71.0 billion, which is 5% to 6% lower than 2014 revenues of $74.3 billion. The guidance estimates an operational increase of 1%-2%, which will be offset by a negative currency impact of 7% for 2015.




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