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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.
JNJ has 3 main divisions. Consumer, Pharma and Devices. The below images shows how these divisions fared.
The next three pie graphs show the sales mix within each division.
Consumer
Pharma
Medical Devices
Overall sales grew by 12.6% for the period to $20bn. This equated to $2.06 per share earnings. The company announced that they would be investing a whopping $30bn in R&D and capital investments over the next four years thanks to the recent tax cuts. An immediate positive consequence of the new tax legislation.
The company is showing steady growth and trades at 16 times forward earnings. It pays a solid dividend and is reinvesting heavily in a sector where demand will consistently grow. JNJ is great stable balancer within our portfolios.