Johnson & Johnson's Earnings Made Easy | Market Check-Up, 8/13/13 | The Motley Fool

TL;DR

Johnson & Johnson reported strong Q2 results with 8.5% revenue growth and earnings per share surpassing analyst estimates. They also raised guidance. The pharmaceutical division was the standout, with impressive growth driven by new product launches.

Transcript

today we're diving into the world's largest Healthcare conglomerate Johnson and Johnson's second quarter results and giving investors everything they need to know about the company this is your Market checkup now Max Johnson and Johnson reported just strong second quarter results but before we jump into that let's give investors a better look at th... Read More

Key Insights

• 💪 Johnson & Johnson's Q2 results exceeded expectations, with strong revenue growth and earnings per share.
• 👋 The pharmaceutical division showed impressive growth due to a wave of new product launches.
• 🪐 Johnson & Johnson sold off its stake in Aln2and, generating a net gain of $1.3 billion.

Questions & Answers

Q: What were Johnson & Johnson's Q2 revenue and earnings per share?

Johnson & Johnson reported nearly $18 billion in revenue with earnings per share of $148, surpassing analyst estimates.

Q: Which division of Johnson & Johnson showed the strongest growth in Q2?

The pharmaceutical division was the standout, with sales up 12%, driven by a wave of new product launches.

Q: Did Johnson & Johnson sell off any assets in Q2?

Johnson & Johnson sold off its remaining stake in Irish pharmaceutical company Aln2and, which resulted in a net gain of $1.3 billion for the company.

Q: How does Johnson & Johnson compare to Abbott Laboratories?

Johnson & Johnson's pharmaceutical division is experiencing strong growth, while Abbott Laboratories has slower-growing divisions. Based on this, Johnson & Johnson appears to be the more preferred pick.

Summary & Key Takeaways

• Johnson & Johnson operates in three main segments: medical devices, pharmaceuticals, and consumer health, which contribute around 40%, 40%, and 20% of revenue, respectively.

• Q2 revenue grew 8.5% to nearly $18 billion, exceeding expectations. Earnings per share came in at $148, beating estimates of $139. The company also raised guidance.

• The pharmaceutical division saw the most significant growth, with sales up 12%, driven by a wave of new product launches.