Johnson & Johnson (JNJ) released their Q2 earnings report earlier in the week last week, and investors in the company will need to take a close look at these figures to better understand the company’s outlook:
1. $18.5 Billion in Revenue
Sales growth reached 4% on the quarter, which outpaced analyst expectations. The company’s sales growth is impressive in the pharmaceutical industry. J&J did have currency headwinds, which caused the company to suffer a 1.4% hit on the quarter.
2. Operational Growth in Pharmaceuticals Rose 9.7% Domestically
The operational increase in the company’s pharmaceuticals unit reached 9.7%. These are domestic figures. The company’s growth is on the high-end, and this also includes a time when Johnson & Johnson is suffering lower sales of Olysio.
The hepatitis C drug has been under increased pressure from competition eating into sales.
Solid growth was experienced with three main drugs from the company: Imbruvica, Invokana and Darzalex.
3. Imbruvica Sales Are Up 92% on the Quarter
Imbruvica has proven to be a profitable drug for the company. Sales rose 92% from Q2 2016 up to $295 million. Investors may be concerned with this figure as sales rose 125% in Q1 2016, but there is a certain level where sales of the drug are expected to not double year over year.
Stelara’s sales rose 41% in the last quarter to $804 million.
The company’s Xarelto sales rose 26% year-over-year, up $594 million.
4. EPS of $1.74
Johnson & Johnson posted a $1.74 EPS, beating analyst expectations of $1.67. Sales guidance for 2016 is $71.5 – $72.2 billion. Earnings per share on the year is expected to reach $6.60. Johnson & Johnson’s strong growth will allow the company to continue posting profits for the foreseeable future. Headwinds are being offset with increased sales, and outpacing analyst expectations is always a plus.