Healthcare giant Johnson & Johnson reports second-quarter earnings before market open on Tuesday, July 17. Here’s a look at what might be expected from its Q2 results.
Healthcare giant Johnson & Johnson (JNJ) reports second-quarter earnings before market open on Tuesday, July 17.
JNJ has been in the headlines lately as it was ordered by a jury last week to pay $4.69 billion in a case related to its talc products. The company has said it plans to appeal the verdict. JNJ has faced a large number of similar suits recently, some of which have been overturned in appeals courts, although this is the largest verdict so far out of all the cases.
The number of suits related to its talc products has been one area that many analysts have expressed some concerns about. There is a lot of uncertainty regarding the total amount JNJ might end up having to pay across all the different cases, although analysts have noted that the company has the financial strength to cover any damages.
For Q2, JNJ is expected to report adjusted EPS of $2.06 on revenue of $20.37 billion, according to third-party consensus analyst estimates. In the same quarter last year, JNJ reported adjusted EPS of $1.83 on revenue of $18.84 billion.
When it last reported, revenue in JNJ’s pharmaceutical segment grew the fastest and was up 19.4% year over year to $9.8 billion. Within that segment, oncology drugs saw the greatest growth, up 45% year over year to $2.3 billion. Analysts have said they are again expecting JNJ’s oncology portfolio to be a large driver of the company’s revenue growth, as some of the drugs have gained additional approvals in 2018.
Revenue in the company’s other two segments grew at a single-digit pace in Q1. Consumer revenue grew 5.3% to $3.4 billion and medical device revenue increased 7.5% to $6.77 billion.
After last quarter’s report, management upped their revenue guidance for all of 2018 to a range of $81 to $81.8 billion, and reiterated their previous guidance for adjusted EPS between $8.00 and $8.20. The company also said it plans to up its R&D spending to $30 billion between 2018 and 2021.
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