Johnson & Johnson (JNJ) reported earnings on Tue 18 Oct 2016 (b/o)

** charts after earnings **

Johnson & Johnson beats by $0.02, reports revs in-line; raises low end of FY16 EPS, in-line; reaffirms FY16 revs guidance  :

• Reports Q3 (Sep) earnings of $1.68 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.66; revenues rose 4.2% year/year to $17.82 bln vs the $17.74 bln Capital IQ Consensus. Operational sales results increased 4.3% and the negative impact of currency was 0.1%. Domestic sales increased 6.7%. International sales increased 1.5%, reflecting operational growth of 1.7% and a negative currency impact of 0.2%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 5.9%, domestic sales increased 7.3% and international sales increased 4.2%. Operations in Venezuela negatively impacted worldwide operational sales growth by 30 basis points, and international sales growth by 70 basis points.
• Co issues guidance for FY16, raises EPS to $6.68-6.73 from $6.63-6.73, excluding non-recurring items, vs. $6.69 Capital IQ Consensus Estimate; sees FY16 revs of $71.5-72.2 bln vs. $72.14 bln Capital IQ Consensus Estimate.  
• "Our third-quarter results reflect the success of our new product launches and the strength of our core businesses, driven by strong growth in our Pharmaceuticals business. With a number of regulatory approvals, several new drug application submissions and new breakthrough therapy designations from the FDA, we are increasingly confident in our pipeline expectation of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1 bln."
  • Worldwide Consumer sales of $3.3 bln for the third quarter 2016 represented a decrease of 1.6% versus the prior year, consisting of an operational increase of 0.1% and a negative impact from currency of 1.7%. Domestic sales increased 1.1%; international sales decreased 3.3%, which reflected an operational decrease of 0.6% and a negative currency impact of 2.7%.
  • Worldwide Pharmaceutical sales of $8.4 bln for the third quarter 2016 represented an increase of 9.2% versus the prior year with an operational increase of 9.0% and a positive impact from currency of 0.2%. Domestic sales increased 11.8%; international sales increased 5.4%, which reflected an operational increase of 5.0% and a positive currency impact of 0.4%.
  • Worldwide Medical Devices sales of $6.2 bln for the third quarter 2016 represented an increase of 1.1% versus the prior year consisting of an operational increase of 0.7% and a positive currency impact of 0.4%. Domestic sales increased 1.4%; international sales increased 0.7%, which reflected an operational decline of 0.2% and a positive currency impact of 0.9%.