Johnson & Johnson's Q4 Earnings Show Much Work Remains For Management
By Stephen Simpson:Going into this earnings release cycle, the growth expectations for med-tech companies like Johnson & Johnson (JNJ) were already pretty modest. Although this healthcare and consumer giant is actually doing reasonably well from a revenue perspective, operating leverage has been lacking. Though JNJ is among the long list of med-tech names that are trading below fair value, there are more compelling names to own today.
Fourth Quarter Results - Started Okay, But Got Worse
With Stryker (SYK) and St. Jude (SJM) already paving the way to relatively low expectations for the quarter, JNJ's fourth quarter performance didn't disappoint. In point of fact, 4% sales growth is actually pretty good in a market like this. Consumer sales growth was a little soft (up 2.7%), while devices/diagnostics was as expected (up 2.4%) and pharmaceuticals (up 6.6%) were actually stronger than expected.Where JNJ seems especially challenged now, though, is in its operatingComplete Story »