JnJ - looking good


- $30 Billion acquisition of Actelion was successful and benefits are flowing in already. - Completed the sale of Codman to Integre for over $1 Billion.


JnJ 2Q numbers


Johnson & Johnson or JNJ if you like, reported numbers for their 2nd quarter of their 2017 financial year earlier this week. The history of any business always fascinates me, in this case there were three brothers (obviously called Johnson), the eldest became a pharmacist and went to NYC to start a career as a drug salesman. He (Robert Johnson) went into business with a fellow called Seabury, back in 1873, selling medicated plasters. In other words, the precursor to the bandaid.


Detailed Company Breakdown


JNJ is made up of three sectors. Pharmaceutical, Consumer and Medical Devices. Pharmaceutical is the biggest sector, making up 46,41% of first quarter sales in 2017. Medical devices come in at second place with 35,42% of first quarter sales. Consumer goods make up the remaining 18,17% of sales. When comparing the first quarter of 2016 to 2017 all of these sectors have grown in sales. The most sizeable change being in the medical devices sector which grew sales by $184 000 000.


JnJ 1Q numbers - steady growth


Johnson and Johnson needs no introduction. From commercialising first aid kits in 1888 to the $320bn market cap business it is today, the story is extraordinary. Now compromising three core divisions, consumer, medical devices and pharma, the business had annual sales of $72bn last year.


JnJ buys Actelion for $30 billion


JNJ shelled out a sizeable amount of money last week to acquire a business called Actelion, the presentation casts it as a Unique & Compelling Value Proposition. In short, JNJ are buying the Actelion business for 30 billion Dollars, to "Expands and complement (the) Janssen portfolio with leading, differentiated in-market medicines for pulmonary arterial hypertension."


JnJ FY & 4Q numbers - stray growth


JnJ reported their full year and 4Q numbers on Tuesday before the US market opened. Off the bat the market wasn't impressed with the forecasted numbers for the coming year, with the stock dropping 2%. The drop highlights how stock prices are current expectations of future profits.


JnJ 3Q numbers - beat on top & bottom line


JNJ reported numbers for their third quarter yesterday, before the market opened. Before we get into those, let us have a look at the business. They operate across the globe, although in 2015, 51 percent of their sales were from the US, 23 percent of sales come from Europe and 18 percent from Asia Pacific and our continent. The balance (8 percent) is classified as "Western Hemisphere", which means Central and South America, as well as the other countries in North America. In terms of divisions, JNJ sales are (or were last year) split as follows: 45 percent pharma, 36 percent medical devices and 19 percent consumer. The company spent just over 9 billion Dollars last year on research and development (12.9 percent of sales), many of these businesses spend around 10-14 percent of annual revenues on searching for the next blockbuster, that will save countless lives in the future.


JNJ 2Q numbers - ahead of expectations


Johnson & Johnson reported numbers yesterday, before the market opened. I recall whilst reading the history of the company that there were three brothers Johnson who started the business, it could just as easily have been called Johnson Bros. I guess history may have been different and afforded the company a less spectacular path. The business is split into three segments, a devices and diagnostics business (as a standalone the biggest in the world), a well known pharma business which most investors associate with and lastly a business that consumers know and trust well, that covers every thing from bandaids to child care. If you have had a kid in the last five decades I am pretty sure that you have used the clear yellow tinged shampoo and the baby powder. In the US of course Tylenol is a big seller in the children pain department, not without their fair share of issues. Their brands are instantly recognisable, Listerine, Neutrogena, as well as the aforementioned brands.


JnJ 1Q 2016 numbers - No split pending


Johnson & Johnson reported numbers for their first quarter of their 2016 financial year, two sessions back. These were released just prior to the market opening in the US. Forgive us, there has been loads going on, we are pretty early, in terms of earnings season reporting thus far. Sales, although flat year on year at 17.5 billion Dollars for the quarter, were a meet, the bottom line was a comfortable beat. Net earnings clocked 4.3 billion Dollars, diluted earnings per share were 1.54 Dollars.


JnJ 4Q and full year numbers


Last week we had Johnson & Johnson Reports 2015 Fourth-Quarter Results, which were a small beat on earnings expectations but a miss on the revenue side of things. As we have spoken about in previous notes on JnJ, they are basically three companies in one with the following devisions, Pharmaceutical Products, Consumer Health Care Products and Medical Devices.


JnJ 3Q numbers and share buyback


As far as we are concerned, the most important company related news yesterday were numbers from Johnson & Johnson. First came the announcement that the company were embarking on a 10 billion Dollar buyback program, which is around 4 percent of the shares in issue at the current share price. This is a sizeable business, not too different in market capitalisation to the two behemoths above, with a market cap of 262 billion Dollars. The business consists of three divisions, a consumer facing business with all the names that you will be familiar with and then the pharma business, with a recently larger and bolted on devices and diagnostics business.


JnJ 2Q numbers


JNJ released numbers for the second quarter yesterday, before the market opened. This is one of the oldest and most recognisable business in the healthcare space across the planet, if not the owner of that title. A bandaid is synonymous with the word plaster. It is a really big business, consisting of three specialist divisions, one being their medical devices (Synthes and DePuy), the other being the well known consumer division (if you have had a baby, you know this one well) and then lastly the pharma business.


J&J first quarter results


Johnson & Johnson was established in 1886 when the Johnson brothers created a line of ready to use surgical dressings. It listed in 1944 and within that period until now, managed a run of 52 consecutive years of dividend increases. Today it operates over 275 companies around the world, 144 manufacturing plants occupying 21.7 million square feet of floor space and has a market cap of $277bn. The company is broken up into 3 business segments, namely Consumer, Pharma and Medical Devices and Diagnostics.


Guidance raised, big quarter with Hepatitis drug


JNJ released their second quarter results before the market opened yesterday, here, take a look: Johnson & Johnson Reports 2014 Second-Quarter Results. Pretty significant numbers in some way, pretty insignificant in the bigger picture. First and foremost, why own a conglomerate inside of the health space, why not own separate businesses in the same space? JNJ is actually a fairly rare company as far as investments go, in my last look at the business, in May of 2014, a post titled Great diversified business, we described the business:


Great diversified business


OK, sorry, we have been backed up here with too many off days and too many results to cover properly at the same time. We had Q1 2014 numbers from JNJ on the 24th of April, which in trading terms is so far back that you cannot remember. Q1 sales when measured against the comparable quarter were 3.5 percent better at 18.1 billion Dollars, net earnings at 4.7 billion Dollars and EPS clocked 1.64 Dollars. The dividend had a few days prior been hiked by 6.1 percent to 70 cents a quarter. That is 2.80 Dollars a year, which means that at 100 odd Dollars the yield is easy enough to work out, not so? Earnings guidance for the rest of the year is in the range of 5.80 to 5.90, which means in the middle of the range the stock trades on a forward multiple of 17.1 times, with a yield of 2.8 percent. The earnings growth for the year is expected to be somewhere in the region of 11.8 percent. Relative to their peers, the company is afforded about the same rating.


Older stories...

Newsletter Sign Up

Sign up for our free daily market newsletter.

Paul Theron's Tweets

Byron Lotter's Tweets

Michael Treherne's Tweets

Bright Khumalo's Tweets