Post Earnings Coverage as Johnson & Johnson’s Sales Grew 1.7%; Adjusted EPS Increased 9.7%

Upcoming AWS Coverage on Zogenix

LONDON, UK / ACCESSWIRE / January 27, 2017 / Active Wall St. announces its post-earnings coverage on Johnson & Johnson (NYSE: JNJ). The Company posted its financial results for the fourth quarter and full year 2016 on January 24, 2017. The consumer products and healthcare Company topped earnings expectations but fell short on sales. Register with us now for your free membership at:

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One of Johnson & Johnson’s competitors within the Drug Manufacturers – Major space, Zogenix, Inc. (NASDAQ: ZGNX), is estimated to report earnings on March 09, 2017. AWS will be initiating a research report on Zogenix following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on JNJ; touching on ZGNX. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=JNJ

http://www.activewallst.com/registration-3/?symbol=ZGNX

Earnings Reviewed

For Q4 2016, Johnson & Johnson reported sales of $18.11 billion, an increase of 1.7% compared to sales of $17.81 billion in Q4 2015. The Company’s operational sales increased 2.3%, offset by the currency impact 0.6%. Johnson & Johnson’s revenue numbers came in below market expectations of $18.26 billion. During Q4 2016, the Company’s domestic (US) sales increased 2.6%, while international sales increased 0.6%, reflecting operational growth of 1.9% and a negative currency impact of 1.3%. The Company noted that there were additional shipping days in the Q4 2015 that negatively impacted the reported quarter by 480 basis points.

For Q4 2016, Johnson & Johnson’s net earnings and diluted earnings per share were $3.8 billion and $1.38, respectively. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the reported quarter were $4.4 billion and adjusted diluted earnings per share were $1.58, representing increases of 7.9% and 9.7%, respectively, compared to the same period in 2015 and exceeding analyst consensus for the quarter of $1.56.

For FY16, Johnson & Johnson’s net earnings and diluted earnings per share totaled $16.5 billion and $5.93, respectively. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the full-year of 2016 were $18.8 billion and adjusted diluted earnings per share were $6.73, representing increases of 7.6% and 8.5%, respectively, compared to the same period in 2015.

Segment Results

Johnson & Johnson’s Worldwide Consumer sales of $13.3 billion for FY16, represented a decrease of 1.5% versus the prior year, and consisted of an operational increase of 1.5% and a negative impact from currency of 3.0%. Domestic sales increased 3.8%; international sales decreased 4.8%. Excluding the net impact of acquisitions, divestitures, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 4.3%, domestic sales increased 5.6%, and international sales increased 3.4%.

For FY16, Johnson & Johnson’s Worldwide Pharmaceutical sales increased 6.5% on a y-o-y basis to $33.5 billion with an operational increase of 7.4% and a negative impact from currency of 0.9%. Domestic sales increased 9.8%; international sales increased 1.8%, which reflected an operational increase of 4.0%, and a negative currency impact of 2.2%. Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 11.5%, domestic sales increased 13.8% and international sales increased 8.3%.

Worldwide operational results, excluding the net impact of acquisitions, divestitures and hepatitis C sales, were driven by new products and the strength of core products.

During the quarter, the US Food and Drug Administration (FDA) approved DARZALEX® (daratumumab) in combination with lenalidomide and dexamethasone, or bortezomib and dexamethasone, for the treatment of patients with multiple myeloma who have received at least one prior therapy. The European Commission approved STELARA® for the treatment of adults with moderately to severely active Crohn’s disease.

Johnson & Johnson’s Worldwide Medical Devices sales of $25.1 billion in FY16 represented a decrease of 0.1% versus the prior year, and consisted of an operational increase of 0.9% and a negative currency impact of 1.0%. Domestic sales increased 1.1%; international sales decreased 1.2%, which reflected an operational increase of 0.7% and a negative currency impact of 1.9%. Excluding the net impact of acquisitions, divestitures, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 3.8%, domestic sales increased 2.9% and international sales increased 4.7%.

Outlook

Johnson & Johnson announced its FY17 guidance for sales of $74.1 billion to $74.8 billion reflecting expected operational growth in the range of 4.0% to 5.0%. The Company announced adjusted earnings guidance for FY17 of $6.93 to $7.08 per share reflecting expected operational growth in the range of 4.8% to 7.0%.

Strategic Evaluations

Johnson & Johnson announced that it is engaging in a process to evaluate potential strategic options for the Johnson & Johnson Diabetes Care Companies, specifically LifeScan, Inc., Animas Corporation, and Calibra Medical, Inc.

The Company stated that strategic options may include the formation of operating partnerships, joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together. All options will be evaluated to determine the best opportunity to drive future growth and maximize shareholder value.

Acquires Actelion

Johnson & Johnson announced that it will launch an all-cash tender offer in Switzerland to acquire all of the outstanding shares of Actelion for $280 per share, payable in US dollars, which equates to CHF 280.08 per share as of January 25, 2017. The transaction, which was unanimously approved by the Boards of Directors of both Companies, is expected to be immediately accretive to Johnson & Johnson adjusted earnings per share and accelerate Johnson & Johnson revenue and earnings growth rates. Johnson & Johnson will fund the transaction with cash held outside the United States.

Stock Performance

At the closing bell, on Thursday, January 26, 2017, Johnson & Johnson’s stock marginally slipped by 0.85%, ending the trading session at $111.84. A total volume of 10.15 million shares were traded at the end of the day, which was higher than the 3-month average volume of 7.16 million shares. In the last twelve months, shares of the Company have surged 12.57%, respectively. The stock is trading at a PE ratio of 19.60 and has a dividend yield of 2.86%. The Company’s shares currently have a market cap of $304.40 billion.

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