25 Jan Johnson & Johnson releases Q4 2021 report. Revenue was worse than expected, but the company made a good forecast for 2022. By the end of the day stock J&J grew up on 3%, to 168 $.
Financial results
Compared to Q4 2020:
- revenue — 24.8 billion (+10,4%), analyst expectations - $25.3 billion;
- adjusted earnings per share — 2,13 (+14,5%), analysts' expectations 2,12 $.
And here is how sales in operating segments have changed.
Pharmaceutical - drugs and vaccines - $14.3 billion (+16,5%). Revenue in this segment grew largely due to sales of the COVID-19 vaccine to various countries around the world. For the quarter, this revenue amounted to $ 1.6 billion, or 6,5% of total revenue.
Medical Devices - medical devices - $6.9 billion (+4,1%). Here, sales grew weakly due to a shortage of medical staff and postponed elective surgeries due to the pandemic..
Consumer Health - OTC medicines and hygiene products - $3.7 billion (+1,1%). In this segment, sales have suffered due to a shortage of raw materials, workforce and disruptions in logistics. Until the end of 2023 J&J plans to spin off its slow-growing consumer business into a separate public company. The name of the company will be announced in mid-2022.
Sales J&J for 2021, billion dollars
| Segment | Revenue |
|---|---|
| Pharmaceutical | 52,1 (+14,3%) |
| Medical Devices | 27,1 (+17,9%) |
| Consumer Health | 14,6 (+4,1) |
| Total | 93,8 (+13,6%) |
Revenue
Balance and flows
As of the end of 2021, Debt J&J was $34 billion, and the volume of liquid money - 32 billion. As a result, the company's net debt is only 2 billion - the minimum in the last five years, with the letter J&J.
Free cash flow last year was $20 billion. Of these, 11 billion J&J returned to its shareholders in the form of dividends. In 2022, the company plans to use free money also for acquisitions. According to J.&J, it is considering the acquisition of small and medium-sized companies.
Sales forecast
According to J&J, in 2022, core income will grow by about 5,5%, up to $96.4 billion. Including the vaccine, approximately 6%, up to 99.6 billion. This is more than analysts' expectations of 97.9 billion.
Promotions
Since the beginning of 2019, shares of J&J noticeably lag behind S&P 500. Including dividends: 41 against 83%.
During this time, the company found itself in several major scandals.. In 2018, consumers reported: baby powder J&J contains asbestos, and it can cause cancer. And in 2019, the company was accused of, that her opioid pain medications are addictive. As a result J&J received thousands of lawsuits totaling several billion dollars.
The company pleaded not guilty, but agreed to partially pay for some cases. And in 2021 J&J announced the creation of a new company. She'll take over all the lawsuits and declare bankruptcy. So J&J plans to reduce his legal fees.
