Proactive Investors - Johnson & Johnson (NYSE:JNJ) will report first quarter results next Tuesday, 16 April, hot on the heels of its acquisition of Shockwave Medical.
This US$13.1 billion deal saw J&J move further into the cardiovascular intervention market, under wider plans to enter “higher growth” sectors, the pharmaceutical giant said at the time.
Any update on the acquisition, which follows takeovers of Abiomed and Laminar, and such plans, could therefore be in focus in the update, given shares have fallen over 9% in the past year.
That said, analysts are expecting a muted set of results from J&J for the first quarter.
Wall Street expectations are for Johnson & Johnson to report a 1.5% dip in per-share earnings to US$2.64.
Revenue is anticipated to fall 13.59% to US$21.38 billion in the meantime, with J&J itself having guided in January that the first half of the year would be stronger than the second on momentum from product launches late last year.
For the full year, consensus estimates are for a 7.4% jump in per-share earnings and a 5% fall in revenue to US$10.65 and US$88.38 billion respectively.
This is against Johnson & Johnson’s own guidance for per-share earnings to sit between US$10.55 and US$10.75 and for revenue to jump by as much as 6% to US$89.0 billion.
Upon announcing the Shockwave takeover, J&J added its balance sheet would remain strong for continued support “of R&D investment, competitive dividends, value-creating acquisitions and strategic share repurchases”.
Read more on Proactive Investors CA