Johnson & Johnson beats Wall Street expectations on profit, misses on revenue

Earnings

Johnson & Johnson headquarters in New Brunswick, N.J.

Mel Evans | AP

Johnson & Johnson‘s fiscal fourth-quarter profit beat Wall Street’s expectations but missed slightly on revenue, the company said Wednesday.

Here’s what the company reported compared with Wall Street estimates, based on a survey of analysts by Refinitiv:

  • Adjusted earnings per share: $1.88 versus $1.87 expected
  • Revenue: $20.74 billion versus $20.8 billion expected

J&J’s stock gained 1% before the earnings report but was essentially flat in pre-market trading after the announcement.

“We delivered strong underlying sales and earnings growth in 2019, driven by the strength of our Pharmaceutical business, accelerating performance in our Medical Devices business and improved profitability in our Consumer business,” J&J Chairman and CEO Alex Gorsky said in a release.

J&J’s pharmaceutical business posted revenue of $10.54 billion, a 3.5% increase year over year. The company’s consumer unit, which makes beauty products such as Neutrogena, increased 0.9% to $3.5 billion. J&J’s medical device unit reported revenue of $6.63 billion, down half a percent from last year.

Litigation expenses were $264 million in the quarter, compared to $1.29 billion a year ago.

The company sees 2020 earnings between $8.95 per share and $9.10 a share.

J&J, the maker of popular consumer product brands like Tylenol and Aveeno, is facing numerous lawsuits ranging from claims that its talc-based baby powder causes cancer to allegations that it helped fuel that nationwide opioid epidemic.

This is a developing story. Please check back for updates.

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