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… 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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