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Johnson & Johnson Expects Slow Growth in 2019
| 01/22/2019
Johnson & Johnson, the world’s leading manufacturer of healthcare products, has predicted slower sales growth this year despite J&J posting better than expected results last year. The company is the first major healthcare manufacturer to post its earnings for the fourth quarter of 2018.
Johnson and Johnson sales forecast could affect healthcare sector
J&J predicted that sales growth this year would be slow, despite the company recording impressive results last year. The sales forecast might affect the entire healthcare industry, with J&J the leading manufacturer of medical products in the world.
This announcement has seen J&J stocks down 2.29 percent at the pre-market trading despite the impressive earnings result it presented.
The Q4 sales of the company were $20.4 billion, which is higher than the $20.2 billion analysts had expected. The company also recorded better earnings per share of $1.97 compared to the $1.95 analysts had predicted.
The company forecasted that the total drug, medical device and consumer operations of the company would rise by 0 percent to 1 percent this year. The company performed better abroad than in the U.S after it recorded a 13.7 percent growth abroad in the fourth quarter compared to 2.8 percent growth it experienced in the U.S.
The strong international growth recorded by the company was affected negatively by inconsistent exchange rates for currencies, with the trade wars affecting the global economy.
The company predicts earnings per share of $8.50 to $8.65 for this year, which is below the average $8.61 predicted by Wall Street analysts. J.P. Morgan analyst Chris Schott pointed out that the company’s forecast was affected by continuous growth challenges to J&J’s medical device and the talc litigation it is still battling with.