Today’s Research Reports on Stocks to Watch: Johnson & Johnson and Procter & Gamble
NEW YORK , NY / ACCESSWIRE / January 24, 2018 / Shares of Johnson & Johnson tumbled on Tuesday after reporting mixed earnings for the fourth quarter and a huge tax charge. Shares of Procter & Gamble also dropped after it reported earnings with a decline in margins.
RDI Initiates Coverage on:
Johnson & Johnson
https://rdinvesting.com/news/?ticker=JNJ
The Procter & Gamble Company
https://rdinvesting.com/news/?ticker=PG
Johnson & Johnson shares closed down 4.26% on almost 17.4 million shares traded on Tuesday. Trading volume was about three times higher than usual for the stock after the company revealed that it had lost $10.71 billion in a quarterly loss because of a $13.6 billion charge due to the recent tax overhaul. According to CFO Dominic Caruso, the tax charge is a payment for years of accumulated foreign earnings, now being brought back to the U.S. This amount is now over $66 billion. Caruso reassured that "$12 billion will come back immediately. We'll immediately use that to fund operations in the U.S." For the fourth quarter, Johnson & Johnson reported that excluding the tax charge and other one-time gains and costs, earnings were $4.78 billion, or $1.74 per share. This was ahead of what analysts had been waiting for at $1.72 a share. Revenue at $20.2 billion was slightly below the expectation of $20.22 billion by analysts. Edward Jones analyst Ashtyn Evans remarked, "This was a strong quarter for Johnson & Johnson, as the pharmaceutical segment ... continues to drive solid growth for the company. The company made 16 acquisitions last year for $35 billion. For the full year, Johnson & Johnson is expecting $8 to $8.20 per share in earnings and revenue of $80.6 billion to $81.4 billion. Wall Street was waiting for $7.88 per share and $80.7 billion in revenue.
Access RDI's Johnson & Johnson Research Report at:
https://rdinvesting.com/news/?ticker=JNJ
The Procter & Gamble Company shares closed down 3.09% on a little over 18 million shares traded on Tuesday. Volume was significant for the stock yesterday. While the company reported a beat in earnings and revenue, traders were more focused on the declining gross margins. EPS at $1.19 was 5 cents higher than street's expectations. Revenue of $17.40 billion was also better than the $17.39 billion that the street had been waiting for. Higher commodity costs, investment outlays and price cuts in the grooming business resulted in a margin decline of 1%. In the other news, Procter & Gamble is the parent company of the product which people have been ingesting and tide pods are being mentioned in the media left and right. The "Laundry Packet Challenge" that has been circulating has 39 cases of deliberately consuming detergent pods just in the first 15 days of January. Procter & Gamble CEO David Taylor wrote in a statement on Monday, "As a father, seeing recent examples of young people intentionally take part in self-harming challenges like ingesting large amounts of cinnamon or the so-called ‘Tide Pods Challenge’ is extremely concerning. Let’s all take a moment to talk with the young people in our lives and let them know that their life and health matter more than clicks, views and likes.
Access RDI's The Procter & Gamble Company Research Report at:
https://rdinvesting.com/news/?ticker=PG
Our Actionable Research on Johnson & Johnson (NYSE: JNJ) and The Procter & Gamble Company (NYSE: PG) can be downloaded free of charge at Research Driven Investing.
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