Johnson & Johnson (JNJ) reported fourth quarter and full-year 2017 earnings prior to the opening bell on 1/23/2018. Shares dropped 4.25% after earnings were released. Over the last year, JNJ has seen its share price rise almost 30% over the past year. Is the short-term price decline a good opportunity to add to JNJ? Let’s examine the company’s fourth quarter and full-year 2017 results to find out.
4th Quarter and Full Year 2017 Earnings
Source: Fourth Quarter Earnings Call Slides
Adjusting for a $13.6 billion tax reform related charge, JNJ’s earnings per share came in at $1.74. This was 2 cents above analyst’s expectations and 10% higher than EPS in the fourth quarter of 2016. Revenue of $20.2 billion topped estimates by $130 million. Revenue was up 11.5% year over year. In the U.S., sales were up 9.8% while international sales grew 9% from Q4 2016. As a little under half of sales came from outside the U.S., a weak dollar actually benefited earnings by 2.1%
