The latest earnings season has begun and the latest quarterly results from some of the largest companies in our economy are starting to arrive.
Tuesday morning it was the mainstay of health care Johnson & Johnson‘S (NYSE: JNJ) came into the spotlight, and investors were less than pleased with its performance. In the wake of the company’s first-quarter earnings report, the stock fell more than 2%. That was a steeper decline than the 0.2% decline in the US economy S&P500 indexing of the day.
A mixed first quarter for the company
In the first quarter, Johnson & Johnson posted revenue of $21.38 billion, which was up more than 2% year over year. Non-GAAP (adjusted) net income also rose slightly, rising nearly 4% to $6.58 billion, or $2.71 per share.
That marked a mixed quarter for the healthcare giant, as it narrowly missed analyst estimates of $21.40 billion in revenue but came in above the average projection of $2.64 for adjusted net income per share.
In Johnson & Johnson’s investor presentation on its performance, the company quoted CEO Joaquin Duato as saying this “reflects our sharpened focus and the progress across our portfolio and pipeline.”
The guidance became smaller
Johnson & Johnson has slightly lowered its full-year expectations; the lower top end of the range also likely contributed to the stock’s sell-off. The company now expects total revenue of $88 billion to $88.4 billion; previously it was $87.8 billion to $88.6 billion. The adjusted profit estimate also received an adjustment. The new range is $10.57 to $10.72 per share; previously the range was $10.55 to $10.75.
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Eric Volkman has no positions in the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
Why Johnson & Johnson Stock Got Slammed by the Market Today was originally published by The Motley Fool
