Johnson & Johnson surpassed analysts’ expectations on revenue and earnings for the second quarter of 2019. Net sales: $20.6 billion; -1.3% YoY GAAP earnings per share: $2.08; +43% YoY Worldwide medical devices sales declined 7% Not sure how their product pipeline will taking shape in the coming years. Any thoughts?
“The world's biggest maker of health care products reported net income of $5.61 billion, or $2.08 per share, helped by $1.68 billion in one-time income, primarily from the sale of its Advanced Sterilization Products business. A year ago, J&J reported net income of $3.954 billion, or $1.45 per share.” Declining sales (top line sales). One time lift from the purge Adv Sterilization Unit. Major cuts in marketing early in the year. Frozen travel budgets. Major job cuts = reorg chaos. These are how they will continue to make the earnings while sales decline. Sounds like a painful 2nd half.
If your not selling, that means your not doing your job or plainly (and probably more accurately) your products suck. Just check out the recent headlines about JnJ: J&J stock falls despite earnings beat and guidance boost Johnson & Johnson falls despite 42% profit spike amid talc, opioid litigation fears You can only manage so much internally (i.e. read as layoffs) to make your bottom line. Fact of the matter is that JnJ has had some very shitty and very poor leaders (some of whom are only in it for the money and glory).
Year after year profit is great, but the stock hasn't done much because they keep diluting it by giving away far too many shares to leadership. JNJ is so profitable the stock price should be increasing >10% every year.
The only reason they showed profit last quarter was from selling off an entire company (ASP). Last year they sold Lifescan to show profit. Pharma growth was sluggish, medical device growth was even worse. I can't believe the contact lens business is declining, how did they mess that one up? When Abbott owned AMO, they had solid upper single-digit growth year after year, now AMO sales are declining. SN has the Sadim Touch!
