Canaccord Genuity Morning Coffee on Johnson & Johnson (JNJ): Hips Don't Lie
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Price: $270.24 +1.07%
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Johnson & Johnson (NYSE: JNJ): Hips don't lie.
Johnson & Johnson posted better-than-expected Q4 earnings but forecast 2012 earnings below consensus due to weak domestic sales and the negative impact of a strong U.S. dollar. The company posted a profit of $218 million or $0.08 per share compared with $1.9 billion or $0.70 per share a year earlier. Excluding charges of $2.9 billion, the company earned $1.13 per share on revenue of $16.26 billion while analysts had forecast $1.09 on $16.27 billion. The charges were related to product recalls and the closure of a Pennsylvania plant for safety and quality control upgrades.
CEO William Weldon said that the plant should be opened next year and that the company should be producing previously recalled items at different locations in 2012. J&J was also faced with several recalls in 2010 due to safety issues with hip replacement products offered through its DePuy unit. Safety concerns along with patients delaying surgery due to economic concerns led to a 4% decline in DePuy’s U.S. sales.
Canaccord Genuity Life Sciences Analyst William Plovanic says he believes investors will view the weak hip and knee growth unfavourably and reiterates his expectations for weak top-line results across the orthopedic industry.
Johnson & Johnson posted better-than-expected Q4 earnings but forecast 2012 earnings below consensus due to weak domestic sales and the negative impact of a strong U.S. dollar. The company posted a profit of $218 million or $0.08 per share compared with $1.9 billion or $0.70 per share a year earlier. Excluding charges of $2.9 billion, the company earned $1.13 per share on revenue of $16.26 billion while analysts had forecast $1.09 on $16.27 billion. The charges were related to product recalls and the closure of a Pennsylvania plant for safety and quality control upgrades.
CEO William Weldon said that the plant should be opened next year and that the company should be producing previously recalled items at different locations in 2012. J&J was also faced with several recalls in 2010 due to safety issues with hip replacement products offered through its DePuy unit. Safety concerns along with patients delaying surgery due to economic concerns led to a 4% decline in DePuy’s U.S. sales.
Canaccord Genuity Life Sciences Analyst William Plovanic says he believes investors will view the weak hip and knee growth unfavourably and reiterates his expectations for weak top-line results across the orthopedic industry.
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