Summary
Johnson & Johnson reported first-quarter 2016 sales of $17.5 billion, a slight increase of 0.6% year-over-year, driven by operational growth of 3.9% which was partially offset by a 3.3% negative currency impact. Net earnings for the quarter were $4.3 billion, resulting in diluted earnings per share of $1.54, a modest increase from $1.53 in the prior year's comparable period. The Pharmaceutical segment demonstrated strong performance with a 5.9% sales increase, notably driven by the Immunology and Oncology therapeutic areas. The Medical Devices segment experienced a slight sales decrease of 2.4%, while the Consumer segment saw a 5.8% decline in sales, impacted by divestitures and operational challenges. The company's balance sheet remains robust with total assets of $136.2 billion and total shareholders' equity of $72.6 billion. Cash flow from operations was $1.8 billion. Johnson & Johnson continued its commitment to returning capital to shareholders through dividends and share repurchases, paying out $2.1 billion in dividends and repurchasing $2.4 billion in stock during the quarter. The company also provided an update on ongoing litigation, with management confident that the ultimate outcome of legal proceedings, net of accrued liabilities, will not materially adversely affect the company's financial position, though it could impact results of operations and cash flows in any given period.
Financial Highlights
53 data points| Revenue | $17.48B |
| Cost of Revenue | $5.33B |
| Gross Profit | $12.15B |
| SG&A Expenses | $4.69B |
| Interest Expense | $160.00M |
| Net Income | $4.46B |
| EPS (Basic) | $1.62 |
| EPS (Diluted) | $1.59 |
| Shares Outstanding (Basic) | 2.76B |
| Shares Outstanding (Diluted) | 2.80B |
Key Highlights
- 1Total sales for Q1 2016 reached $17.5 billion, a 0.6% increase year-over-year, with operational growth of 3.9% partially offset by a 3.3% negative currency impact.
- 2Net earnings were $4.3 billion, with diluted EPS of $1.54, a slight increase from $1.53 in the prior year.
- 3The Pharmaceutical segment showed strong growth, with sales up 5.9% to $8.2 billion, led by Immunology (up 18.1%) and Oncology (up 22.2%) therapeutic areas.
- 4Medical Devices sales decreased by 2.4% to $6.1 billion, impacted by divestitures and some market pressures, though Orthopaedics and Surgery showed modest operational growth.
- 5Consumer segment sales declined 5.8% to $3.2 billion, affected by divestitures and operational challenges, particularly in international markets.
- 6The company returned $4.5 billion to shareholders through dividends ($2.1 billion) and share repurchases ($2.4 billion) in the quarter.
- 7Operating cash flow was $1.8 billion, supporting dividends, share repurchases, and investments.