JNJ

On Thursday, Johnson & Johnson (JNJ) boosted its dividend 7%, and we continue to expect strong growth in its payout in coming years. We believe J&J remains a core holding in our Dividend Growth Newsletter. << About our Dividend Growth Newsletter — PR Newswire (April 26) “…the Board of Directors voted to increase the quarterly dividend for the 50th consecutive year from 57 cents per share to 61 cents per share. The dividend will be payable on June 12, 2012.”

Johnson & Johnson (JNJ) issued relatively uneventful first-quarter results Tuesday. We don’t expect to make a change to our fair value estimate, and we continue to like the company as a holding in the portfolio of our Dividend Growth Newsletter. << View Our Dividend Growth Newsletter Archives First-quarter revenue was roughly flat from the same period a year ago, as domestic sales declines and a negative currency impact more than offset international strength.  Net earnings in the quarter were also less-than-compelling with earnings per share advancing a meager 1.5%, to $1.37. However, J&J did update its earnings guidance for the full year to as much as $5.17 per share at the high end of the range, but most of the … Read more

Johnson & Johnson (JNJ) reported mixed fourth-quarter results Tuesday. Though we weren’t exactly enthralled by the firm’s performance, we believe JNJ to be a key holding in the portfolio of our Dividend Growth Newsletter. Our fair value estimate for JNJ is unchanged at this time. The company’s fourth-quarter and full-year 2011 sales increased 3.9% and 5.6%, respectively, from the same period last year. Revenue increased in all three segments–consumer, pharmaceuticals, and medical devices/diagnostics–led by strong international growth. Drugs such as Stelara and Remicade continue to garner high demand, while new applications for Xarelto may contribute to expansion in coming quarters. Though the top-line expansion was decent, recalls and related charges–including litigation and product liability–continued to plague JNJ’s bottom line, amounting … Read more

Johnson & Johnson (JNJ) reported mixed results on Tuesday that showed strong top-line expansion but relatively flat earnings growth due to higher marketing costs and missteps that led to product recalls. We don’t see any reason to change our $83 fair value estimate at this time. J&J’s top line jumped nearly 7% led by international revenue, which skyrocketed over 16% during the period (roughly half of that organic with the balance being currency). International pharmaceutical revenue jumped an impressive 27% in the period. Domestic sales, however, were pretty much weak across the board: domestic consumer sales fell about 4.5%, domestic pharmaceutical sales fell over 6%, while domestic medical-device sales dropped nearly 1%. As expected, domestic pharma sales were hurt by … Read more

In our latest article on Johnson & Johnson (JNJ), we indicated we’d like to see continued growth in international sales as well as some recovery in the OTC/nutritionals business (Tylenol, Motrin) in the U.S. Let’s see how J&J measured up in its second quarter. The firm’s results were in line with our estimates, and the firm kept its full-year earnings guidance at $4.90-$5.00 per share.  Net earnings, excluding special items, were $3.5 billion, or $1.28 a share (the street was expecting $1.24 per share), which excludes one-time expenses related to restructuring Cordis, a company that makes drug-coated stents, and litigation surrounding the DePuy hip recalls. This reflects bottom-line growth of about 5% from the same period a year ago. Sales … Read more