Johnson & Johnson (J&J) is a global medical equipment, pharmaceutical and consumer goods producer which was founded in 1886. Johnson & Johnson is the first of the major pharmaceutical companies to report quarterly earnings and the results could impact similar companies like Pfizer and Merck. J&J is set to expand its dominance in the growing market of prostate cancer drugs. The drug maker has entered into a collaboration worth $500 million with Tesaro, accessing rights to market its FDA- Approved cancer drug, Niraparib. Johnson & Johnson still faces significant costs as a result of litigation; the company has spent over $5 billion in litigation fees in cases over its drugs and medical devices stretching over the last two years.
Investor Notes:
- The average estimation for Q1 2016 adjusted Earnings Per Share is $1.65, up from $1.56 for the same quarter last year.
- J&J has had 3 upward revisions of earnings estimates in the last 30 days.
- Revenue for the quarter is set to increase by 0.6% from $17.37 billion for first quarter of 2015 to $17.47 billion for the first quarter of 2016.
- J&J shares tend to see low impact in the stock price after earnings results, with the 1-day average price change on earnings approximately 1.9%.
- J&J significantly outperformed industry and the S&P 500 in the first quarter.
- Share price is up close to 7% year-to-date, with the April 13th 2016 seeing the stock at 110.34; a new all-time high.
