Pharmaceutical giant Johnson & Johnson (JNJ) is scheduled to report fourth-quarter results before the market opens Tuesday. On average, 16 analysts polled by Thomson Reuters expect the company to earn $0.97 per share for the quarter with estimates in the range of $0.95-$0.99 per share. Quarterly revenues are expected to be $15.70 billion. Analysts' estimates typically exclude special items.
The New Brunswick, New Jersey-based company is engaged in the research and development, manufacturing and sales of various healthcare products and has over 250 operating companies. Founded in 1886, the company operates in three segments - Consumer, Pharmaceutical and Medical Devices & Diagnostics. In fiscal 2008, the Pharmaceutical segment generated over 38% of total revenues and Med Devices & Diagnostics division contributed 36%, with revenue from the Consumer division forming 25% of the total.
The maker of Acuvue contact lenses and Band-Aids is grappling with the economic crisis as well as generic competition that have led to a decline in its revenues. The company's blockbuster drugs, the antipsychotic drug Risperdal and epilepsy treatment Topamax, are finding it hard to take on competing generic versions. Risperdal lost patent exclusivity in 2008 and Topamax lost U.S. patent exclusivity in March 2009. The drug maker has been trying to offset the effects of generics by sprucing up its other products, mainly vaccines.
For the third quarter, Johnson & Johnson's net income grew to $3.35 billion or $1.20 per share from $3.31 billion or $1.17 per share in the same quarter last year. Quarterly sales declined to $15.1 billion from $15.9 billion in the previous year.
For the fourth quarter of 2008, the Dow component earned $2.714 billion or $0.97 per share. The results included special items related to in-process research and development charges of $141 million with no tax benefit, and an after-tax gain of $229 million representing the net impact of litigation settlements. Sales to customers totaled $15.182 billion in the quarter.
While announcing the third-quarter results in October 2009, Johnson & Johnson lifted its earnings per share outlook for full-year 2009 to $4.54 - $4.59 from its prior range of $4.45 - $4.55, excluding the impact of special items. Further, the world's biggest healthcare company backed this outlook in November 2009. For the full year, analysts look for earnings of $4.58 per share on revenues of $61.05 billion.
In fiscal 2008, the company reported net earnings of $12.949 billion or $4.57 per share. Sales to customers in 2008 amounted to $63.747 billion.
In November, the healthcare giant announced elimination of 6%-7% of its global workforce, as part of its global restructuring initiatives. The restructuring initiatives are targeted to achieve $1.4 billion-$1.7 billion in cost savings when fully implemented in 2011, with $800 million - $900 million expected to be achieved in 2010.
Among events during the just concluded quarter, Ethicon, Inc., a Johnson & Johnson company, in December 2009 said it agreed to acquire Acclarent Inc., in an all-cash transaction for about $785 million. Acclarent is a privately held medical technology company dedicated to designing, developing and commercializing devices that address conditions affecting the ear, nose and throat or ENT.
In December, the U.S. Food and Drug Administration issued a Complete Response Letter on Johnson & Johnson-sponsored skin treatment ceftobiprole. The agency indicated in the letter that after review it determined the application cannot be approved in its present form.
Among other large pharmaceutical companies, Pfizer Inc. (PFE) is slated to announce fourth-quarter results on February 3. Analysts look for earnings of $0.50 per share on revenues of $15.94 billion.
Procter & Gamble Co. (PG) is expected to announce second-quarter results on January 28. Wall Street expects earnings of $1.43 per share on revenues of $21.07 billion.
JNJ closed Monday's regular trade at $63.22, up $0.02 or 0.03%, on 10 million shares. For the past year, the stock traded in the range of $46.25-$65.95.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.