Johnson & Johnson Reports Operational Growth in 4Q15

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

A look at Johnson & Johnson

Johnson & Johnson (JNJ) released its 4Q15 and 2015 earnings on January 26, 2016, reporting a ~2.4% fall in its top line for 4Q15 over 4Q14. The company surpassed Wall Street analysts’ estimates for EPS (earnings per share), reporting EPS of $1.44 against an estimated $1.42.

JNJ’s price rose by ~5% to close at $101.18 on January 26, 2016, compared to its previous day’s close of $96.4. This rise in share price was due to the positive response from investors toward JNJ’s fourth-quarter earnings.

Johnson & Johnson’s stock value has risen by ~2% over the last 12 months. It’s performed better than the iShares US Pharmaceutical ETF (IHE), which has reported a fall of ~4.4% in its value in the same period.

During the same period, Merck and Co.’s (MRK) stock fell by over 13.4%, Novartis’s (NVS) stock fell by ~12.5%, and Sanofi’s (SNY) stock fell by ~6.3%. Investors can refer to the earnings of other companies on Market Realist’s Earnings Overview page.

4Q15 performance

Johnson & Johnson’s top line fell by 2.4% to $17.8 billion in 4Q15, driven by operational growth of 4.4% in revenues, which was more than offset by a negative currency impact of 6.8%. At constant exchange rates, JNJ’s consumer segment revenues rose by 3.1%, its pharmaceutical segment revenues fell by 0.3%, and its medical devices segment revenues rose by 0.9%.

Geographically, US markets contributed nearly 52.2% to JNJ’s total revenues at $9.3 billion in 4Q15. This was a rise of ~8% compared to 4Q14.

In the International market, Europe contributed ~22.5% to JNJ’s total revenues at $4.0 billion in 4Q15. This was a fall of ~12.2% over 4Q14.

The Asia-Pacific and Africa markets contributed ~17.4% to JNJ’s total revenues at $3.1 billion in 4Q15, a fall of ~7.1% over 4Q14.

The western hemisphere excluding the United States contributed ~7.9% to JNJ’s total revenues at $1.4 billion in 4Q15, a fall of ~19.1% over 4Q14.

Investors can refer to a company overview of Johnson & Johnson at Investing in Johnson & Johnson: What You Should Know.

Continue to Next Part

Browse this series on Market Realist:

• Part 2 - JNJ’s 2015 Revenues Rise 1.8% on a Constant Currency Basis

• 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