Johnson & Johnson Q1 earnings slide on flat revenue growth

Healthcare giant Johnson & Johnson (JNJ) kicked off pharma earnings as it posted its first-quarter 2019 earnings on Tuesday, April 16, before the opening bell.

Reported revenue for the quarter barely changed — inching just 0.1% higher — at $20 billion, while net earnings slipped 14% to $3.7 billion.

On a diluted basis, earnings fell 13% to $1.39 per share.

On a non-GAAP basis, operational sales improved 4% year-over-year, while adjusted operational sales grew 5.5%. Adjusted net earnings inched 0.5% higher to $5.7 billion and adjusted EPS rose by 2% to $2.10 per diluted share.

For Johnson & Johnson, US sales inched 2% higher to $10.1 billion. However, international sales slipped about 2% to $9.9 billion.

Consumer sales slowed by 2% to $3.3 billion and Medical Devices sales slumped 5% to $6.5 billion, while Pharmaceuticals top-line improved 4% to $10.2 billion.

Johnson & Johnson said in a statement that “the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort.”

JNJ now expects adjusted FY2019 operational sales to rise 2.5-3.5%. Operational sales is expected to be $82.0-82.8 billion for the year.

“Our strong first-quarter results reflect continued underlying operational sales and adjusted EPS growth,” said CEO Alex Gorsky

“At the same time, we remain focused on investing in innovative technologies and platforms that will make a meaningful difference in the lives of patients around the world. I am proud of our global colleagues’ collective efforts to deliver on our long-term goals and our ability to create value for all of our stakeholders,” the JNJ chief added as Johnson & Johnson posted its first-quarter results.

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