JNJ’s 2015 Revenues Rise 1.8% on a Constant Currency Basis

Johnson & Johnson’s Top Line Falls 2.4% to $17.8 Billion in 4Q15

(Continued from Prior Part)

Johnson & Johnson’s growth rate

Johnson & Johnson (JNJ) reported a rise of ~4.4% in revenues on a constant currency basis for 4Q15 compared to 4Q14 in its 4Q15 earnings release on January 26, 2016. The company’s 4Q15 revenues were $17.8 billion. This was close to analysts’ estimates of $17.9 billion.

The above graph shows that foreign exchange rates had a constant negative impact on the growth rate of Johnson & Johnson in each quarter. This was mainly because nearly 48% of total revenues of JNJ are reported from sales outside the United States. The company operates over 134 manufacturing facilities and eight innovation and research centers worldwide.

Year-over-year performance

Johnson & Johnson’s revenues have risen over the past few years following the restructuring of its business segments and the strong performance of its key products including Xarelto, Zytiga, Remicade, Stelara, and Olysio, among others.

JNJ’s 2015 revenues reported a rise of 1.8% on a constant currency basis compared to 2014. However, considering the negative impact of currencies, 2015 revenues fell by ~5.7% to $70.1 billion compared to $74.3 billion for 2014.

Segment-by-segment revenues and performances of blockbuster drugs during 4Q15 and 2015 will be discussed in the coming articles. JNJ’s drug Stelara competes with Amgen’s (AMGN) and Pfizer’s (PFE) Enbrel and Abbott’s (ABT) Humira, and its drug Zytiga competes with Dendreon’s (DNDN) Provenge.

Investors can consider ETFs such as the iShares US Pharmaceuticals ETF (IHE) or the Fidelity MSCI Healthcare Index ETF (FHLC) in order to divest their risk.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Johnson & Johnson Reports Operational Growth in 4Q15

• Part 3 - JNJ’s Pharmaceutical Segment Contributes 45.3% of Revenue in 4Q15

• Part 4 - JNJ’s Blockbuster Drug Remicade Sees Flat Revenues in 4Q15