Johnson & Johnson (JNJ) Stock Climbs On Positive Earnings

Johnson & Johnson JNJ Stock NewsJohnson & Johnson (NYSE: JNJ)

Johnson & Johnson released its first fiscal quarter of 2015 earnings report today beating both EPS and top-line estimates. As a result, the company’s stock climbed in early trading before a correction followed by steady gains in the afternoon. Here’s what we saw in the earning report, what we saw in the market, and what we can expect to see from JNJ moving forward.

Johnson & Johnson Q1 Earnings Beat EPS and Top-Line Estimates

If you want the intricate details of the earnings report, check them out here. Nonetheless, the overview looks great. Here’s what we saw…

  • Total Revenue For The Quarter – JNJ generated $17.4 billion in the quarter; beating analyst expectations of $17.3 billion.
  • Earnings Per Share – While analysts expect Johnson & Johnson earnings per share to come in at $1.53, the company exceeded expectations here too; generating $1.56 per share.
  • The Negative – Overall, the company’s revenue fell by 4.1% with the international segment causing most of the drop; falling 12.4% and forcing other areas to pick up the slack.

How JNJ Stock Reacted

Overall, JNJ reacted with relatively modest gains. In morning trading, the stock climbed by nearly a full percent. However, we quickly saw the tides change, bringing the stock into the negative. Around 10:20, we started to see what looked like slow and steady growth; which has continued for the most part throughout the day. Currently (1:15), JNJ is trading at $100.70 per share after a modest gain of 0.15%.

What We Can Expect Moving Forward

All in all, I think that we’ll continue to see growth from Johnson & Johnson stock. All in all, the report beat expectations. While revenue was down overall, the reduction was caused by poor foreign sales; something many US companies are struggling with as a result of the strong US dollar. Nonetheless, this is not a permanent problem; it’s more of just a bump in the road.

What Do You Think?

Where do you think Johnson & Johnson stock is headed and why? Let us know in the comments below!

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