Johnson & Johnson Tops Fourth Quarter Earnings markets

Johnson & Johnson Tops Fourth Quarter Earnings

Johnson & Johnson outdid analyst’s fourth quarter earnings and revenue expectations.

The sprawling health company made $20.2 billion in its revenue, a growth of 11.5 percent from the last year quarter. On an operational basis, the revenue of Johnson & Johnson increased 9.4 percent. Apart from the impact of acquisition, divestitures, and currency the worldwide sales went up 4.2 percent.

The American multinational medical devices forecasts a revenue of $80.6 billion to $81.4 billion for the whole 2018, or operational growth of 3.5 percent to 4.5 percent, and an earnings of $8 to $8.20 per share. Meanwhile, the analyst had been expecting $7.87 earnings per share.

Johnson & Johnson’s pharmaceutical business posted a 15.5 percent rise year-over-year, not including the effects of currency, acquisitions, and divestitures.

The worldwide pharmaceutical business of Johnson & Johnson posted its sales of $36.3 billion for the full-year, an increase of 8 percent from last year. The company’s $30 billion acquisition of Actelion, a Swiss biotech company, contributed 4.2 percent to the worldwide operational sales growth.

Its revenue went up 4.2 percent, while also factoring out acquisitions and divestitures.

Meanwhile, the stock of Johnson & Johnson increased 1.9 percent in premarket trading.

Some analysts have speculated how the company would use its $16 billion of overseas cash now that it can repatriate it at a less expensive tax rate.

“We are pleased with the passage of recent legislation modernizing the U.S. tax system, which enables Johnson & Johnson to invest in innovation at higher levels to help address the most challenging unmet medical needs facing health care today,” Alex Gorsky, CEO of Johnson & Johnson, stated in a statement.

Johnson & Johnson raised its full-year 2017 forecast based on expected demand for the rare disease treatments of Actelion.

Remicade, a rheumatoid arthritis drug of the company, faces competition from Pfizer’s Inflectra and Merck and Samsung Bioepis' Renflexis.

On the other hand, Invokana, a diabetes drug of Johnson & Johnson, has also felt pressure from Eli Lilly and Boehringer Ingelheim’s Jardiance.

In December, the diabetes market got even more crowded when the Food and Drug Administration approved Steglatro, the type 2 diabetes drug of Merck and Pfizer.

The stock of the company has increased 29 percent in the past year.

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Peter Blake | January 23, 2018