Johnson & Johnson Reports Gains in Full-Year and Fourth-Quarter Sales, Earnings

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NEW BRUNSWICK, N.J.—Johnson & Johnson (NYSE: JNJ) reported Tuesday that its worldwide sales totaled $71.9 billion in fiscal 2016, an increase of 2.6 percent compared to 2015, and its adjusted earnings per share (EPS) totaled $6.73, an increase of 8.5 percent.

The pharmaceutical and vision care company also noted that its “strong” adjusted full-year 2016 operational sales and EPS increased 7 percent and 9 percent, respectively. In its vision care segment, J&J reported full-year sales of $2.79 billion in 2016, an increase of 6.4 percent.

In a breakdown of business results, J&J noted that the vision care segment’s sales growth was driven by “U.S. category growth and market-share gains driven by core and new products” during 2016. The company also cited the success of Acuvue contact lenses as a key contributor to overall sales gains in the vision care business.

J&J chairman and chief executive officer Alex Gorsky said in a statement that the company “accelerated our adjusted growth for 2016 over the prior year, and delivered a strong total shareholder return of greater than 15 percent.”

He added, “The strong adjusted sales and EPS [earnings per share] growth was driven by the impressive performance of our pharmaceutical business and continued momentum in our medical device business and share gains while improving profitability in our consumer business,”

Looking ahead at 2017, Gorsky said J&J expects to “continue driving sustainable, long-term growth through the new products, science and innovation” that J&J is developing.

In a breakout of fourth-quarter results, J&J’s overall sales increased 1.7 percent to $18.1 billion, while adjusted earnings per share totaled $1.58, an increase of 9.7 percent. In the vision care segment, the fourth quarter of 2016 was particularly strong, with sales climbing 10.3 percent to $721 million. The company cited such factors as U.S. inventory build, “net price and consumption growth driven by new products.”

In its 2017 full-year guidance, J&J said it expects to report sales of $74.1 billion to $74.8 billion at the end of this year, which would reflect expected operational growth in the range of 4 to 5 percent. Additionally, as part of ongoing portfolio management, J&J said it is “engaging in a process to evaluate potential strategic options” for the Johnson & Johnson Diabetes Care Companies, specifically LifeScan.