Published on March 29th, 2017 | by itadmin

Fourth Quarter Preview Report of Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson

Among all the competitors in the health care market, Johnson & Johnson (NYSE:JNJ) is the first company to announce its financial reports for the quarter four of 2014. It is expected that the total revenues of the company are around $18.4 billion, with an increase of 1.1%.YOY; its EPS are estimated to be $1.26.

Johnson & Johnson (NYSE:JNJ) has outperformed, with exceeding the targeted estimates for last 8 quarters, and revenue figure exceeded the targeted figure in seven quarters. On the other hand, as compared to the same quarters for previous years, the revenue growth for the last quarter has been slow.

Although the last quarter was slow for Johnson & Johnson (NYSE:JNJ), its overall performance throughout the year gets the attention off of this one quarter. The year over year revenues of Johnson & Johnson (NYSE:JNJ) are expected to be $74.68 billion, marking an increase of 4.7%. The EPS is estimated to be $5.96 for each share.

Furthermore, Johnson & Johnson (NYSE:JNJ) is developing a vaccine for the Ebola virus, in collaboration with Bavarian Nordic, a company based in Denmark. The vaccine is already in its clinical trial phase. Johnson & Johnson (NYSE:JNJ) is also going to develop a cure for HIV, and for this purpose, the company has made deals with AstraZeneca Plc ADR, as well as Gilead Sciences Inc.

Johnson & Johnson (NYSE:JNJ)’s earnings were a lot higher as compared to previous years. They owed this success mainly to their new Hepatitis C cure that the company launched recently, called Olysio. The drug is FDA approved, and produced sales worth $23 million during 2013, and for the first 3 quarters of 2014, $1.98 billion. Total sales for 2014 are expected to be $2.37 billion.

On the other hand, competition in the market of Hepatitis C drug is increasing, and this is one reason why Johnson & Johnson (NYSE:JNJ) may get reduced revenues. Harvoni by Gilead Sciences Inc. has the biggest chunk of market share, with AbbVie working hard to market its Viekira Pak.

Remicade is another very significant drug for Johnson & Johnson (NYSE:JNJ), which contributes 9.3% to the total revenues of Johnson & Johnson (NYSE:JNJ). However, it is expected that this drug will have reduced revenues because of the availability of cheaper treatments in market. Meanwhile, the patent for this drug will also expire in the year 2018.

On the other hand, it is predicted by analysts that Johnson & Johnson (NYSE:JNJ) will face a 1.6% reduction in revenues throughout 2015. The EPS is estimated to be $6.06.

Still, the analysts are generally positive when it comes to overall performance of Johnson & Johnson (NYSE:JNJ), with a target price at the end of the year to be $109.5. From a total of 27 analysts, 15 analysts have given Johnson & Johnson (NYSE:JNJ) a Buy rating, while 11 analysts have given it a rating of Hold. Competitors are expected to release their reports for quarter this month.


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