Johnson & Johnson (NYSE:JNJ) Expecting Better Financial Results in 2017

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Johnson & Johnson

The New Jersey, United States-based Johnson & Johnson (NYSE:JNJ) revealed on Tuesday they are expecting higher than expected sales and earnings for the full fiscal year 2017. The management said the outlook for the company is looking good. To back up this claim, Johnson & Johnson posted impressive results for the fourth quarter. Though sales have come down by a bit, but the adjusted earnings are more than what the market expected. Overall, J&J reports strong growth.

Good Projections from Johnson & Johnson

During the 2017 fiscal year, Johnson & Johnson says their adjusted earnings are likely to be between $6.93 and $7.08 for each share. The operational growth will be between 4.8 percent and 7 percent. Further, the multinational pharmaceutical, consumer goods, and medical device maker said they are likely to achieve a sale between $74.1 billion and $74.8 billion, which is an operational growth between 4 percent and 5 percent.

Operational growth from sales is expected to be somewhere around 3 percent to 3.5 percent, excluding the impact from acquisitions or divestitures, if any.

Good Times for Johnson & Johnson

These are happy times for the business. Johnson & Johnson won the talcum powder lawsuit recently, which had been a huge headache and a PR emergency for the business. Hopefully, these lawsuits are now a thing of the past. Also, Zacks Investment raised their status of the stock to “Hold” in view of the better results and projections. This will also surely please the management and investors.

In 2016, J&J posted earnings of $5.93 for each share. The adjusted per stock earnings were $6.73 over total sales of $71.88 billion. Both these figures were higher than 2015.

Net earnings are up by 18.6 percent in the last quarter. It stands at $3.81 billion, while in 2015, that was $3.22 billion. The earning for each stock stood at $1.38, which comes to a growth of 20 percent. One year back, that was $1.15.

The adjusted net earnings stand at $4.36 billion after excluding after-tax expenses and a few special items. In the same quarter of 2015, this was just $4.04 billion.

In spite of Johnson & Johnson (NYSE:JNJ) announcing better financial results and good projections for 2017, the stock still went down by 1.68 percent. However, that changed gradually with investors showing interest in the business. It has gone up by 1.49 percent since then.