Healthcare giant Johnson & Johnson (JNJ -0.02%) reported its fourth-quarter results on Jan. 25, 2022. In this Motley Fool Live video, recorded on Jan. 26, Fool contributors Keith Speights and Brian Orelli talk about what investors should like about J&J's latest update.
10 stocks we like better than Johnson & Johnson
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of January 10, 2022
Keith Speights: Brian. It's earnings season yet, again. Johnson & Johnson was the first big healthcare company to announce its Q4 results, and the company provided its update on Tuesday. What do you think about Johnson & Johnson's quarter?
Brian Orelli: That was a pretty good quarter for the company. On a sales came in at $24.8 billion, that was a growth of 10.4% year-over-year. It missed on analysts' expectations by about half a billion dollars on the revenue side, on the adjusted earnings per share side, came in at $2.13 cents, that was up 14.5% and beat analyst expectations by a penny.
They gave the 2022 sales outlook and they're looking for sales of 7%-8.5% over 2021. That includes the COVID vaccines, so if you back that out there looking at closer to 6.5%-7.5% growth year-over-year in 2022. On the adjusted earnings-per-share side, they're looking for $10.40-$10.60 and that's a 6.1%-8.2% increase over 2021. Because they're not planning on getting a profit from the vaccine, you don't have to back anything out of the adjusted earnings line.
Pharmaceuticals really led the way. Pharmaceuticals were up 18.6% compared to 5.6% for medical devices and 2.9% for consumer health.
The medical devices, I think, maybe the disappointment there and not all that surprising given that we saw the pandemic and a lot of the medical devices are used for voluntary surgeries and so patients are canceling those because they don't want to do them right now or their doctors are canceling right now because they are not available, then that's obviously a big issue.
Then on the consumer health spin-out, we've got a little bit of an update, they're planning on naming the leaders in the first half of 2022 and then in the first half of 2022, they're going to give us a name. Because remember, Johnson & Johnson is keeping the name for the pharmaceutical and medical devices, so we will get a new name for the consumer health division, and then there's still planning on separating in 2023, as they had announced previously.
