Johnson & Johnson Beats Up on Analysts Yet Again

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Johnson & Johnson (NYS: JNJ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Johnson & Johnson notched revenue of $16.26 billion. The 18 analysts polled by S&P Capital IQ predicted net sales of $16.28 billion. Sales were 3.9% higher than the prior-year quarter's $15.64 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.13. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.09 per share on the same basis. GAAP EPS of $0.08 for Q4 were 89% lower than the prior-year quarter's $0.70 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.2%, 60 basis points worse than the prior-year quarter. Operating margin was 20.3%, 170 basis points worse than the prior-year quarter. Net margin was 1.3%, 1,110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $16.32 billion. On the bottom line, the average EPS estimate is $1.34.

Next year's average estimate for revenue is $67.91 billion. The average EPS estimate is $5.15.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 13,483 members out of 13,963 rating the stock outperform, and 480 members rating it underperform. Among 3,294 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,236 give Johnson & Johnson a green thumbs-up, and 58 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Johnson & Johnson is outperform, with an average price target of $71.53.

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At the time this article was published Seth Jayson owned shares of the following at the time of publication: Johnson & Johnson. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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