Research archive for JNJ

Johnson & Johnson is the eighth most widely held stock in Vestact New York portfolios. We like it for its broadly diversified portfolio of healthcare assets - pharmaceuticals, medical devices and consumer products.

Medical devices, pharmaceutical, and consumer goods giant Johnson & Johnson (J&J), reported expectation beating third-quarter numbers, thanks to good sales in the turnaround of the baby care business and cancer drugs. The company rebranded and relaunched its baby business after losing market share to the likes of Jessica Alba's The Honest Company.

Johnson & Johnson is a mega-cap ($354 billion) healthcare giant, owned by most Vestact clients in New York portfolios. It published quarterly results yesterday, before the opening bell. Earnings came in notably higher than expected, and the stock rose 3.5% over the course of the day, to $129.11.

Yesterday Johnson & Johnson released 1st quarter results. This is quite a difficult business to understand because of all the moving parts. I will try something different today and use mostly images to explain these numbers.

Last week, Johnson & Johnson released their 4Q and FY numbers, beating market expectations. One of the reasons why I love the company as an investment is because it is basically three companies in one. Investment bankers have been licking their lips at the prospect of breaking the company up, arguing it unlocks value for the shareholder. A breakup probably will add value in the short term, over time though I think having a strong brand and some diversification across sectors is more important. Here is a breakdown of the company:

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

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.

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.

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 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 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 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.

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.

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.

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.