Summary
Johnson & Johnson reported a decline in sales for both the third quarter and the nine-month period ended September 27, 2015, compared to the prior year. This decrease was largely driven by unfavorable currency fluctuations and competitive pressures in the pharmaceutical segment, particularly affecting Hepatitis C products. Despite the revenue decline, the company demonstrated operational growth in certain segments and geographies, indicating underlying business resilience. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases, highlighting financial discipline amidst a challenging macroeconomic environment.
Financial Highlights
53 data pointsBeta
Financial Statements
Beta
| Revenue | $17.10B |
| Cost of Revenue | $5.22B |
| Gross Profit | $11.88B |
| SG&A Expenses | $5.08B |
| Interest Expense | $123.00M |
| Net Income | $3.36B |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.20 |
| Shares Outstanding (Basic) | 2.77B |
| Shares Outstanding (Diluted) | 2.81B |
Key Highlights
- 1Worldwide sales decreased by 7.4% in the third quarter and 6.8% for the nine months ended September 27, 2015, primarily due to significant negative currency impacts and competitive product introductions in the Hepatitis C market.
- 2Operational sales growth was positive for the nine months (1.0%) and third quarter (0.8%), indicating underlying business strength despite reported declines.
- 3The Pharmaceutical segment experienced a significant revenue decline, largely attributed to the performance of Hepatitis C products and the impact of generic competition on established drugs.
- 4The Consumer segment showed resilience with positive operational growth in key franchises like OTC and Oral Care, driven by new product launches and marketing efforts.
- 5Medical Devices saw an overall sales decrease, impacted by divestitures (Ortho-Clinical Diagnostics) and pricing pressures, though Vision Care and Cardiovascular Care showed operational growth.
- 6Net earnings declined significantly, with third-quarter net earnings at $3.36 billion ($1.20 EPS) compared to $4.75 billion ($1.66 EPS) in the prior year.
- 7The company continued to return value to shareholders, declaring a cash dividend of $0.75 per share and announcing a new $10.0 billion share repurchase program.