Johnson & Johnson Beats Analyst Estimates on EPS
Johnson & Johnson (NYS: JNJ) reported earnings on July 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Johnson & Johnson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Margins increased across the board.
Johnson & Johnson logged revenue of $17.88 billion. The 16 analysts polled by S&P Capital IQ expected to see a top line of $17.71 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.48 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.48. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.39 per share. Non-GAAP EPS of $1.48 for Q2 were 14% higher than the prior-year quarter's $1.30 per share. GAAP EPS of $1.32 for Q2 were 164% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.3%, 50 basis points better than the prior-year quarter. Operating margin was 28.3%, 40 basis points better than the prior-year quarter. Net margin was 21.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $17.53 billion. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $70.83 billion. The average EPS estimate is $5.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 13,480 members out of 13,986 rating the stock outperform, and 506 members rating it underperform. Among 3,301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,230 give Johnson & Johnson a green thumbs-up, and 71 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 $89.29.
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The article Johnson & Johnson Beats Analyst Estimates on EPS originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Johnson & Johnson and recommends the following options:long January 01 2014 $50 calls on Johnson & Johnson. The Motley Fool owns shares of 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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