A mixed quarter and narrowed guidance didn’t really please investors.
The latest earnings season has begun, and the latest quarterly results from some of our economy’s largest companies are starting to come in.
Tuesday morning, it was healthcare mainstay Johnson & Johnson‘s (JNJ -2.13%) turn in the spotlight, and investors weren’t all that satisfied with the performance. In the wake of the company’s first-quarter earnings report, the stock traded down by over 2%. That was a steeper fall than the 0.2% decline of the S&P 500 index on the day.
A mixed first quarter for the company
In its first quarter, Johnson & Johnson earned $21.38 billion in sales, which was more than 2% higher on a year-over-year basis. Non-GAAP (adjusted) net income also edged higher, rising by nearly 4% to $6.58 billion, or $2.71 per share.
That meant a mixed quarter for the healthcare giant, as it narrowly missed the $21.40 billion consensus-analyst estimate for sales but edged past the $2.64 average projection for per-share adjusted net income.
In Johnson & Johnson’s investor presentation on its performance, the company quoted CEO Joaquin Duato as saying that it “reflects our sharpened focus and the progress in our portfolio and pipeline.”
Guidance narrowed
Johnson & Johnson narrowed its full-year guidance slightly; the lowered top end of the range likely also contributed to the stock’s sell-off. The company is now forecasting total sales of $88 billion to $88.4 billion; previously, it was guiding for $87.8 billion to $88.6 billion. The adjusted-earnings estimate also got a tweak. The new range is $10.57 to $10.72 per share; before, the range was $10.55 to $10.75.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
