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Johnson & Johnson beats by $0.02, reports revs in-line; guides FY17 EPS and revenue below consensus; evaluating strategic alternatives for Diabetes Care Companies: LifeScan, Animas and Calibra Medical
- Reports Q4 (Dec) earnings of $1.58 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.56; revenues rose 1.7% year/year to $18.11 bln vs the $18.26 bln Capital IQ Consensus. Operational sales results increased 2.3% and the negative impact of currency was 0.6%. Domestic sales increased 2.6%. International sales increased 0.6%, reflecting operational growth of 1.9% and a negative currency impact of 1.3%. As a reminder, there were additional shipping days in the fourth quarter of 2015 that negatively impacted the current quarter by 480 basis points. Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 7.6%, domestic sales increased 9.5% and international sales increased 5.6%.
- Worldwide Consumer sales of $13.3 billion for the full-year 2016 represented a decrease of 1.5% versus the prior year, consisting of an operational increase of 1.5% and a negative impact from currency of 3.0%.
- Worldwide Pharmaceutical sales of $33.5 billion for the full-year 2016 represented an increase of 6.5% versus the prior year with an operational increase of 7.4% and a negative impact from currency of 0.9%.
- Worldwide Medical Devices sales of $25.1 billion for the full-year 2016 represented a decrease of 0.1% versus the prior year consisting of an operational increase of 0.9% and a negative currency impact of 1.0%.
- Co issues downside guidance for FY17, sees EPS of $6.93-7.08, excluding non-recurring items, vs. $7.12 Capital IQ Consensus Estimate; sees FY17 revs of $74.1-74.8 bln vs. $75.13 bln Capital IQ Consensus with operational sales +3.0-3.5% ex divestitures.
- As part of the Company's ongoing portfolio mgmt, the Company is announcing it is engaging in a process to evaluate potential strategic options for the Johnson & Johnson Diabetes Care Companies, specifically LifeScan, Inc., Animas Corporation, and Calibra Medical, Inc. Strategic options may include the formation of operating partnerships, joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together. All options will be evaluated to determine the best opportunity to drive future growth and maximize shareholder value.