Categories Analysis, Health Care

Johnson & Johnson mentioned COVID 80 times during earnings call, vs. Abbott’s 16

JNJ held a longer conference call to discuss the Covid-19 impact and vaccine; Abbott’s call duration in line with past calls

Global pharma giants Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) announced their earnings for Q1 2020 last week. Despite being close peers facing a similar crisis situation they took different approaches in sharing information with investors during their earnings conference calls.

Longer conference call

The topics of discussion varied widely. Both JNJ and Abbott had sufficient time devoted to aspects of quarterly earnings and segment-wise results as usual. However, the former had a slightly more holistic discussion. The company executives talked about stepwise continuity action plans, which included financial decisions (M&A opportunities, capital allocation) and operational priorities (future product launches).

For example, JNJ’s conference call for this quarter lasted 102 minutes, which was almost 17 minutes longer than what it usually allots. The extra time was used to discuss in detail COVID-19 related subjects including the vaccine and impact on the operations. Meanwhile, Abbott’s call was only an hour long, in line with the duration of its past conference calls. It had a limited explanation to offer in its approach to capital allocation and financial decisions.

Importantly, COVID was mentioned only 16 times during Abbott’s entire conference call, which was five times lower than JNJ’s mentions.  This comes in the backdrop of the Securities and Exchange Commission (SEC) publishing a statement encouraging maximum disclosure with investors on the COVID-19 impact.

Covid heat map jnj abt

JNJ and Abbott have leveraged their own strengths and core competencies to tackle COVID-19. JNJ has announced a lead vaccine candidate for COVID-19. Abbott, which is specialized in the Diagnostics business has worked on launching three test kits, each with a different value proposition. JNJ, meanwhile presented their future course of action and phase-wise timelines. Abbott had a rough outline chalked out, but lacked specific information to the extent that JNJ had mapped.

[irp posts=”56002″]

Looking forward

JNJ and Abbott with histories going back over 130 years, having seen the Great Depression and other financial crises, have past data to forecast implications of the recession on their performance. They have their financial modelling in place. But they have communicated differently.

JNJ was more open about future guidance. It aimed to strike a balance between transparency and accuracy while communicating estimates to its investors. To ensure transparency, it mentioned all the assumptions it had made in its modelling. It had exact or at least ballpark figures on 2020 revenues, earnings, segment-wise results. CFO Joseph Wolk said:

We know some companies in our peer set have pulled their guidance. We also know that some sell side models have not been updated. We understand that may have been an option for us as well, but in uncertain times, we look forward to offering you as much transparency and credible insight into our view of our business.

Abbott, on the other hand, had a different approach. From the statement of the CEO of Abbott, Robert Ford:

 “It’s going to be very difficult to be able to get that right to the penny going forward. But I believe that we’ll be in a position to give, let’s say, some more qualitative update sometime in the quarter. And depending on how that goes, we might be able to give guidance in the second half here.

Abbott was more conservative and only willing to share the shape of the curve (V shape recovery) based on the modelling, overall outlook on 2020, without many numerical projections.

(Written by Manjula S)

Most Popular

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results

Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a

AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates

Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion

Comments

  1. Pingback: Leandro Farland
  2. Pingback: Innovation
  3. Pingback: Dental Veneers
  4. Pingback: Dental emergencies
  5. Pingback: Student Success
  6. Pingback: regional
  7. Pingback: اقتصاد
  8. Pingback: Pharmacognos
  9. Pingback: IT Professionals
  10. Pingback: Prof. Esraa Esmat
  11. Pingback: pannelli luci led
  12. Pingback: butterfly pecs
  13. Pingback: chest press
  14. Pingback: Fiverr Earn
  15. Pingback: Fiverr Earn
  16. Pingback: Fiverr Earn
  17. Pingback: fiverrearn.com
  18. Pingback: fiverrearn.com
  19. Pingback: shipping broker
  20. Pingback: glucotrust buy
  21. Pingback: clima para mañana
  22. Pingback: fiverrearn.com
  23. Pingback: fiverrearn.com
  24. Pingback: fiverrearn.com
  25. Pingback: jute rugs
  26. Pingback: blogging
  27. Pingback: Safe Piano Removal
  28. Pingback: clima birmingham
  29. Pingback: 18k gold plated
  30. Pingback: tech
  31. Pingback: best Phone
  32. Pingback: future university
  33. Pingback: wix website
  34. Pingback: bulldogs puppy
  35. Pingback: future university
  36. Pingback: six sigma
  37. Pingback: Warranty
  38. Pingback: FUE
  39. Pingback: FUE
  40. Pingback: FUE
  41. Pingback: Classic Books 500
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: Media
  46. Pingback: Aussie Porn Stars
  47. Pingback: ikaria juice
  48. Pingback: Tips
  49. Pingback: FiverrEarn
  50. Pingback: live sex cams
  51. Pingback: live sex cams
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: gold
  56. Pingback: technology
  57. Pingback: FiverrEarn
  58. Pingback: FiverrEarn
  59. Pingback: FiverrEarn
  60. Pingback: cheap sex cams
  61. Pingback: canine probiotics
  62. Pingback: french bulldog
  63. Pingback: live sex cams
  64. Pingback: live sex cams
  65. Pingback: dehydrated water
  66. Pingback: Freeze dried
  67. Pingback: rare breed-trigger
  68. Pingback: 늑대닷컴
  69. Pingback: Slot Yunani
  70. Pingback: nang sydney
  71. Pingback: allgame
  72. Pingback: 918kiss
  73. Pingback: หวย24
  74. Pingback: pg slot
  75. Pingback: Raahe Guide
  76. Pingback: catskills hotel
  77. Pingback: evisa
  78. Pingback: 44 mag ammo
  79. Pingback: SaaS Attorney
  80. Pingback: itsMasum.Com
  81. Pingback: itsMasum.Com
  82. Pingback: itme.xyz
  83. Pingback: MasumINTL.Com
  84. Pingback: ItMe.Xyz
  85. Pingback: ItMe.Xyz
  86. Pingback: itme.xyz
  87. Pingback: masumintl.com
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top