Johnsons & Johnson’s sales jump to £16.35 billion in fiscal Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Jan 26, 2021
  • Johnsons & Johnson’s sales jump to £16.35 billion in the fiscal fourth quarter.
  • The American multinational corporation reports £1.24 billion of net earnings.
  • J&J may share interim results of phase 3 trial for its candidate vaccine this week.

Johnson & Johnson (NYSE: JNJ) reported its financial results for the fiscal fourth quarter on Tuesday that topped Wall Street estimates despite the impact of the ongoing Coronavirus pandemic. J&J topped analysts’ forecasts in the prior quarter (Q3) as well.

J&J shares gained close to 2% in premarket trading on Tuesday. The stock is now trading at £123.71 per share after recovering from a low of £81.14 per share in the last week of March 2020 – a good news for value investors.

J&J Q4 financial results versus analysts’ estimates

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Johnson & Johnson said that its net earnings in the fourth quarter came in at £1.24 billion that translates to 47.46 pence per share. In the same quarter last year, its net earnings had printed at a significantly higher £2.92 billion or £1.10 per share.

On an adjusted basis, J&J earned £1.36 per share in the recent quarter. The American multinational reported £16.35 billion of sales in Q4 versus the year-ago figure of £15.11 billion. According to FactSet, experts had forecast the company to post £15.77 billion of sales in the fourth quarter. Their estimate for per-share earnings stood at a lower £1.33 per share.

The New Brunswick-based company saw a 1.4% annualised growth in sales from its consumer health business and a 16.3% increase in sales from its pharmaceutical segment in Q4. Remicade (rheumatoid arthritis therapy) sales, J&J added, registered at £2.92 billion in the fourth quarter or 6% higher than last year.

Johnson & Johnson is currently running clinical trials to test its Remicade drug as a possible treatment of COVID-19. Its Tylenol is already recommended to reduce fever in COVID-19 patients. As per J&J, it is likely to publish interim results of its phase 3 trial for its candidate COVID-19 vaccine later this week.

Johnson & Johnson’s guidance for fiscal 2021

Other prominent figures in the U.S. firm’s earnings report on Tuesday include a 0.7% decline in sales from its medical device business. For fiscal 2021, J&J now forecasts its sales to fall in the range of £66.07 billion to £66.95 billion. Its estimate for full-year adjusted EPS now stands at up to £7.01.

Johnson & Johnson performed slightly upbeat in the stock market last year with an annual gain of a little under 10%. At the time of writing, it is valued at £319 billion and has a price to earnings ratio of 26.09.

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