Update: Now includes detailed medical device segment results
Johnson & Johnson (NYSE:JNJ) today beat Wall Street’s expectations with its fourth-quarter results but missed the consensus forecast for the full year.
The New Brunswick, N.J.-based healthcare conglomerate swung to red ink during the quarter, posting losses of -$10.71 billion, or -$3.99 per share, on sales of $20.20 billion, compared with profits of $3.81 billion on sales growth of 11.5% for Q4 2016.
J&J said the recently enacted U.S. tax reform delivered a $13.6 billion hit on on unremitted foreign earnings. Adjusted to exclude these and other one-time items, earnings per share were $1.74, 2¢ ahead of The Street, where analysts were looking for sales of $20.07 billion.
Full-year profits were $1.30 billion, or 47¢ per share, on sales of $76.45 billion, for a bottom-line slide of -92.1% on sales growth of 6.3%. Adjusted EPS were $7.30, 57¢ under the consensus estimate, which called for annual sales of $80.70 billion.
“Johnson & Johnson delivered strong adjusted earnings per share growth of 8.5% and total shareholder return of greater than 24% in 2017, driven by the robust performance of our pharmaceutical business, while continuing to make investments in acquisitions, innovation and strategic partnerships to accelerate growth in each of our businesses,” chairman & CEO Alex Gorsky said in prepared remarks. “As we enter 2018 and look beyond, we are experiencing an incredible pace of change in health care. Johnson & Johnson is uniquely positioned to lead during this dynamic era and deliver innovative solutions for patients and consumers that drive sustainable, long-term growth. We are pleased with the passage of recent legislation modernizing the U.S. tax system, which enables Johnson & Johnson to invest in innovation at higher levels to help address the most challenging unmet medical needs facing health care today.”
J&J said it expects to report adjusted EPS of $8.00 to $8.20 on sales of $80.6 billion to $81.4 billion this year.
Medtech sales rise 8.3% for the quarter, 6% for the year
For its fourth quarter, Johnson & Johnson reported medical device sales of approximately $7 billion, up 8.3% compared to the same period during the previous quarter.
For the full year, the company reported medical device division sales of $26.6 billion, up 5.9% compared to its previous fiscal year.
Medical device domestic sales reportedly increased 4.5% while international sales increased a larger 7.1%, reflecting an operational increase of 6.7% and positive currency impact of 0.4%.
Sales during the quarter were impacted by the acquisition of Abbott‘s (NYSE:ABT) Medical Optics business, which J&J said contributed 4.5% to worldwide operational sales growth.
After excluding the net impact of acquisitions and divestitures, worldwide sales of medical devices were reported to have increased 1.5% while domestic sales were flat and international sales increased 3%.
Sales for the world’s largest medical device operation were up 5.9% to $26.6 billion, J&J said, with U.S. sales rising 4.5% and O.U.S. sales up 7.1%.
Shares in Johnson & Johnson have dropped 3.6% so far today, down $5.38 at $142.76 as of 1:59 p.m. EST.
