Summary
Johnson & Johnson (JNJ) reported revenues of $20.02 billion for the first quarter of 2019, a slight increase of 0.1% year-over-year, with operational growth of 3.9% offset by a negative currency impact of 3.8%. Net earnings decreased to $3.75 billion, or $1.39 per diluted share, compared to $4.37 billion, or $1.60 per diluted share, in the prior year's first quarter. This decrease was largely driven by significant one-time charges, including a $0.9 billion in-process research and development (IPR&D) impairment charge related to the AL-8176 development program and a $0.3 billion litigation expense. The Pharmaceutical segment showed strong operational growth of 7.9%, driven by key products like Stelara and Tremfya, while the Consumer segment experienced a slight sales decline of 2.4%. The Medical Devices segment also saw a decrease in sales of 4.6% overall. Despite the net earnings decline, the company generated substantial operating cash flow and continues its commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
53 data points| Revenue | $20.02B |
| Cost of Revenue | $6.62B |
| Gross Profit | $13.41B |
| SG&A Expenses | $5.22B |
| Interest Expense | $102.00M |
| Net Income | $3.75B |
| EPS (Basic) | $1.41 |
| EPS (Diluted) | $1.39 |
| Shares Outstanding (Basic) | 2.66B |
| Shares Outstanding (Diluted) | 2.70B |
Key Highlights
- 1Worldwide sales reached $20.02 billion, a 0.1% increase year-over-year, with operational growth of 3.9%.
- 2Net earnings declined to $3.75 billion from $4.37 billion in the prior year's quarter, primarily due to a $0.9 billion IPR&D impairment charge and a $0.3 billion litigation expense.
- 3Diluted earnings per share decreased to $1.39 from $1.60 in the first quarter of 2018.
- 4The Pharmaceutical segment reported strong operational sales growth of 7.9%, with key drivers including Stelara and Tremfya.
- 5The Consumer segment experienced a 2.4% decrease in sales, influenced by divestitures and a decline in Baby Care sales.
- 6Cash flow from operations remained robust at $3.54 billion, supporting dividend payments and share repurchases.
- 7The company completed the acquisition of Auris Health, Inc. for approximately $3.4 billion and the divestiture of its Advanced Sterilization Products (ASP) business for $2.7 billion subsequent to the quarter.