Johnson & Johnson (NYSE: JNJ) stock fell over 1.1% on Jan 27th, 2021 (as of 9:36 am GMT-5; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 20. The company has delivered the net income of $1.74 billion, down from $4.01 billion, a year earlier. In the U.S., sales increased 9.6%.ver-the-counter medicines had a decline of 1.5%. In the U.S., OTC sales were flat, and the OUS declined by 2.9%. Globally, the results were negatively affected by COVID-19 restrictions resulting in lower cough, cold, and flu incidences, impacting Children’s TYLENOL, global cough, and cold and digestive products.
In regions outside the U.S., the reported growth was 7%. Operational sales growth outside the U.S. was 4.3% with currency positively affecting the reported OUS results by 2.7 points. In regions outside the U.S., the reported year-over-year change was negative 1.3%. Operational sales growth outside the U.S. declined by 0.2% with currency negatively affecting the reported OUS results by 1.1 points. Further, Consumer Health posted strong above-market growth due to the Oral Care, Wound Care, and OUS skin health/beauty businesses partially offset by the negative impact of COVID-19 primarily in the OTC business and the SKU rationalization program which majorly impacted baby and skin health/beauty outside the U.S. E-commerce growth continues to be strong across regions and franchises. OWound Care grew 12.2% mainly due to strong performance across NEOSPORIN and BAND-AID brand adhesive bandages in the U.S. and Asia Pacific. Worldwide Pharmaceutical sales of $12.3 billion rose 14.6%, on the back of the strength in all regions, with U.S. sales increasing by 15.3% and OUS sales increasing by 13.5%. In neuroscience, the paliperidone long-acting portfolio performed well, growing 9%, due to market and share growth driven by increased new patient starts and strong persistency. The total Pulmonary Hypertension portfolio achieved strong growth of 37.4% with OPSUMIT growth of 36.7% and UPTRAVI growth of 44.1%.
JNJ in the fourth quarter of FY 20 has reported the adjusted earnings per share of $1.86, beating the analysts’ estimates for the adjusted earnings per share of $1.81. The company had reported the adjusted revenue growth of 8.3 percent to $22.48 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $21.62 billion. Operational sales growth, which excludes the effect of translational currency, rose 7.1% as currency had a positive impact of 1.2 points.
For the first quarter of 2021, the company expects sales to be in the range of $90.5 billion to $91.7 billion and adjusted earnings per share expected to be in the range of $9.40 to $9.60.