Johnson & Johnson Stock Extends Losses as Global Rout Subsists
Johnson & Johnson (NYSE:JNJ) is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company. The stock was down 0.69% at the top of the noon hour on February 6. Shares have plummeted 7.6% in 2018 thus far.
Johnson & Johnson failed to generate positive buzz even after releasing fourth-quarter and full-year results in January that beat analyst expectations. In the fourth quarter the company posted revenue of $20.2 billion which represented an 11.2% increase from the prior year. It reported an adjusted net gain of $4.8 billion or $1.74 per share in the fourth quarter.
However, sentiment dipped as the company unveiled its sales forecast for 2018. Without the benefit of acquisitions and divestitures, organic growth was projected to be between 2.5% and 3.5%. Analysts had expected growth in the range between 3.5% and 4%. Johnson & Johnson expects its tax rate to fall to 16.5% in 2018 due to the Tax Cuts and Jobs Act.
Johnson & Johnson was hit with more bad news in late January after a report was released showing that it was facing numerous lawsuits could reveal damaging documents. One of those lawsuits revolves around the company’s insistence that its baby powder does not contain asbestos and that there is no link to mesothelioma nor ovarian cancer.
Analysts believe that the potential damage has been overstated in these cases. The stock also offers a dividend of $0.84 per share representing a 2.5% dividend yield.