Summary
Johnson & Johnson reported second quarter 2020 results with total sales of $18.3 billion, a decrease of 10.8% year-over-year, impacted by an operational decline of 9.0% and a negative currency impact of 1.8%. The decrease was largely driven by a significant slowdown in the Medical Devices segment, which saw a 33.9% drop in sales, primarily attributed to the ongoing COVID-19 pandemic's impact on elective procedures and non-essential medical services. The Pharmaceutical segment demonstrated resilience, with sales increasing by 2.1% operationally, driven by strong performance in Oncology and Immunology, despite some headwinds from COVID-19. Net earnings for the quarter were $3.6 billion, down from $5.6 billion in the prior year's second quarter, resulting in diluted earnings per share of $1.36, a decrease from $2.08. The company's balance sheet remains strong, with total assets of $158.4 billion and total shareholders' equity of $63.0 billion as of June 28, 2020. Despite the challenging top-line performance in certain segments, Johnson & Johnson continued to return capital to shareholders through dividends and share repurchases.
Financial Highlights
53 data points| Revenue | $18.34B |
| Cost of Revenue | $6.58B |
| Gross Profit | $11.76B |
| SG&A Expenses | $4.99B |
| Interest Expense | $45.00M |
| Net Income | $3.63B |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.36 |
| Shares Outstanding (Basic) | 2.63B |
| Shares Outstanding (Diluted) | 2.67B |
Key Highlights
- 1Total sales for Q2 2020 decreased by 10.8% to $18.3 billion, reflecting a challenging operating environment, primarily due to the COVID-19 pandemic.
- 2The Medical Devices segment experienced a significant sales decline of 33.9%, largely impacted by the deferral of elective medical procedures.
- 3The Pharmaceutical segment showed resilience with a 2.1% increase in sales, driven by key growth drivers like STELARA®, DARZALEX®, and IMBRUVICA®.
- 4Net earnings decreased to $3.6 billion in Q2 2020 from $5.6 billion in Q2 2019, with diluted EPS falling to $1.36 from $2.08.
- 5Despite the sales decline, the company maintained a strong balance sheet with $11.2 billion in cash and cash equivalents and $7.96 billion in marketable securities as of June 28, 2020.
- 6Operating cash flow for the first six months was $6.8 billion, demonstrating the company's ability to generate cash despite the challenging economic climate.
- 7Johnson & Johnson continued its commitment to shareholders by declaring and paying regular quarterly cash dividends.