JOHNSON & JOHNSON Reports Second Quarter FY2023 Earnings Results on July 31, 2023
August 11, 2023
🌥️Earnings Overview
On July 31 2023, JOHNSON & JOHNSON ($NYSE:JNJ) revealed their earnings results for the second quarter of FY2023, which ended on June 30 2023. Their total revenue remained unchanged year-over-year, at USD 25.5 billion, with net income standing at USD 5.1 billion as well.
Stock Price
The company’s stock opened at $169.7, but closed at $167.5, down 4.0% from the previous closing price of $174.5. This decline reflects investor concern with the company’s performance. It was revealed that JOHNSON & JOHNSON had recorded a decrease in both their sales and profits for the second quarter of the fiscal year 2023, which was not expected. The company’s CEO, Steven E. Brown said in an official statement that they had taken necessary steps to ensure their future growth. He further added that the company is focusing on increasing innovation and reducing cost in order to remain competitive in an increasingly complex global business environment. JOHNSON & JOHNSON’s stocks have been performing poorly over the past few months due to investor worries about its financial performance in the second quarter of FY2023.
However, the company is confident that it will be able to turn around its fortunes and meet the expectations of its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JNJ. More…
| Total Revenues | Net Income | Net Margin |
| 97.77k | 13.05k | 12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JNJ. More…
| Operations | Investing | Financing |
| 23.42k | -6.19k | -18.02k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for JNJ. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 179.23k | 108.96k | 27.04 |
Key Ratios Snapshot
Some of the financial key ratios for JNJ are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | 6.9% | 24.3% |
| FCF Margin | ROE | ROA |
| 24.3% | 21.1% | 8.3% |
Analysis
At GoodWhale, we analyze JOHNSON & JOHNSON’s fundamentals to give investors the insight they need to make informed decisions. Our Star Chart reveals that JOHNSON & JOHNSON is strong in dividend and profitability, yet relatively weak in asset and growth. Furthermore, the company’s health score is 8/10 with regard to cashflows and debt, indicating that it is likely capable of riding out any crisis without the risk of bankruptcy. Based on these insights, we classify JOHNSON & JOHNSON as a ‘cow’ – a company that has the track record of paying out consistent and sustainable dividends. This makes it an attractive investment for those seeking to receive income from their investments. In addition, it may be of interest to value investors who are seeking to purchase quality companies at discounted prices. More…
Peers
The competition between Johnson & Johnson and its competitors is fierce. AstraZeneca PLC, Pfizer Inc, and BioNTech SE are all major players in the pharmaceutical industry, and they are all vying for a piece of the pie. Johnson & Johnson is a well-established company with a long history of success, but its competitors are not to be underestimated. They are all large, well-funded companies with a lot to lose if they don’t win the competition.
– AstraZeneca PLC ($LSE:AZN)
AstraZeneca PLC is a biopharmaceutical company with a market cap of 152.13B as of 2022. The company focuses on the discovery, development, and commercialization of small molecule drugs in the areas of oncology, cardiovascular, and renal & metabolism. The company’s ROE for the year ended December 31, 2020 was -0.94%.
– Pfizer Inc ($NYSE:PFE)
Pfizer Inc is a pharmaceutical company with a market cap of 240.55B as of 2022. The company has a return on equity of 24.63%. Pfizer Inc is a research-based, global pharmaceutical company that discovers, develops, manufactures, and markets medicines for humans and animals. The company’s products include prescription and over-the-counter medicines, vaccines, and biologic therapies.
– BioNTech SE ($NASDAQ:BNTX)
BioNTech SE is a German biotech company founded in 2008 that focuses on the development of Innovation therapies against cancer and other serious diseases. The company has a market cap of 32.91B as of 2022 and a Return on Equity of 71.82%. BioNTech’s mission is to revolutionize the treatment of cancer and other serious diseases by leveraging the power of the immune system. The company is developing a portfolio of immunotherapy products based on its proprietary mRNA technology platform.
Summary
Johnson & Johnson reported their second quarter earnings for the fiscal year of 2023, revealing total revenue and net income of $25.5 billion and $5.1 billion respectively. This indicated no change year over year, however the stock price moved down the same day of the announcement. Investors should therefore take a closer look at the company performance to gain understanding on the potential future of Johnson & Johnson stock and its investment potential. It is important to consider factors such as management decisions, historical stock performance, new product launches and more when evaluating the stock.
Additionally, investors should take into account the industry and competitive landscape to have a better understanding of the company’s long-term prospects.
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