Johnson & Johnson (JNJ), Proctor & Gamble’s (PG) quarterly sales jump

The stocks of Johnson & Johnson (NYSE: JNJ) and Procter & Gamble Company (NYSE: PG) were trading lower in the premarket after their quarterly results on Tuesday.  

The JNJ stock was down 0.59% to US$159.18, and PG stock was down 1.65% to US$139.99 at 8:12 am ET. The stocks were getting mixed reactions from investors after the results.

Earning highlights 

Johnson & Johnson  

Johnson & Johnson posted sales of US$23.3 billion, a 10.7% increase YoY, compared to US$21.08 billion in Q3 2020. The earning per share rose 3.0% to US$1.37, while net earnings were US$3.67 billion, up 3.2%, from net earnings of US$3.55 billion in the prior year’s Q3.

Half of its sales came from the US, and the rest came from the international market.

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Segment-wise:

The consumer health segment contributed US$3.7 billion, up 5.3% YoY, pharmaceuticals US$12.99 billion, up 13.8% YoY, and medical devices US$6.64 billion, up 8% YoY.

The consumer health worldwide operational sales grew primarily due to over-the-counter products, including respiratory, digestive health, and skin and beauty items.

Pharmaceuticals worldwide sales improved on account of sales of medicines for treating multiple myeloma, inflammatory diseases, arthritis, etc.

Medical Devices’ worldwide sales increased in electrophysiology products, general surgery, surgical vision, contact lenses, etc.

Johnson & Johnson has revised its full-year guidance for 2021, but it has not provided GAAP financial measures on a forward-looking basis. Its current market cap is US$421.5 billion, and the P/E is 24.08. JNJ paid an annualized dividend of US$4.24, and its dividend yield is 2.63%. 

The stock closed at US$160.12 on Oct 18 with a share volume of 7,465,461. 

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Source – pixabay

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Procter & Gamble Company  

Its net sales were US$20.3 billion, up 5%, from US$19.3 billion in Q1, FY2021. Its organic sales rose by 4%. The earning per share diluted was US$1.61 compared to US$1.63 in Q1, FY2021. 

Segment-wise:

The beauty segment sales increased by 5%, grooming segment increased 5%, healthcare grew by 8%, fabric and home care grew 5%, and baby, feminine and family care segment increased by 3%, making the overall sales growth improvement to 5% from the prior year.

The operating margin decreased 260 basis points YoY in the September quarter, and the gross margin decreased 370 basis points. For FY 2022, the company expects the all-in sales growth to remain in the range of 2% - 4%.

P&G expects GAAP net earnings per share diluted to be between 6% and 9% for fiscal 2022 compared to GAAP earnings per share of US$5.50 in fiscal 2021.

The company expects to pay approximately US$8 billion in dividends and US$7 billion to US$9 billion in the repurchase of common stock shares in FY 2022. It also expects adjusted free cash flow productivity of 90% in fiscal 2022.

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The Cincinnati, Ohio-based consumer company owns many popular brands, ranging from food toilet papers to detergents. The company was founded in 1837.

It has a current market capitalization of US$345.6 billion and a P/E ratio of 25.93. The dividend yield is 2.41%, and the annualized dividend is US$3.479.

The stock closed at US$142.34 with a share volume of 9,119,005 on Oct 18, 2021.

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Bottomline

Both Johnson & Johnson and Proctor & Gamble have a significant market share globally, which reflects in their sales volumes. With the holiday sales season around the corner, many companies are hoping for strong sales growth and positive returns. However, investors must analyze the stock carefully before investing.