A Look At Pharma ETFs Post Q4 Results

Total earnings of 90% of the total healthcare market capitalization that has reported so far are up 11.7% on revenue growth of 8.6%. The growth rates seem impressive when compared with some of the other sectors. Earnings and revenue beat ratios of 71.8% and 79.5%, respectively, also appear good.

Most of the industry bigwigs came up with solid results either beating earnings or revenue estimates or both but offered bleak outlook. Let’s delve into some of them:

Earnings in Focus

Johnson and Johnson

The world's biggest maker of healthcare products continued its long streak of earnings beat. Earnings per share came in at $1.97, a couple of cents ahead of the Zacks Consensus Estimate and 13.2% higher than the year-ago quarter. Revenues inched up 1% year over year to $20.39 billion and edged past the Zacks Consensus Estimate of $20.1 billion. However, Johnson & Johnson offered a downbeat outlook for 2019. Revenues are expected in the range of $80.4-$81.2 billion, flat to up 1%, while earnings per share will likely range between $8.50 and $8.65, indicating growth of 5.7-7.6%.


Earnings per share of 64 cents came in a penny above the Zacks Consensus Estimate and revenues of $13.98 billion were ahead of the estimated $13.74 billion. On an annual basis, earnings per share and revenues rose 3% and 2%, respectively. For 2019, the U.S. drug giant guides revenues in the range of $52-$54 billion and earnings per share in the range of $2.82-$2.92.


Earnings per share came in at $1.04, surpassing the Zacks Consensus Estimate by a penny and improving 6% from the year-ago quarter. Revenues grew 5% year over year to $11 billion, edging past the estimated $10.93 billion. Merck expects revenue in the range of $43.2-$44.7 billion for this year and earnings per share of $4.57-$4.72.


Bristol-Myers reported earnings per share of 94 cents, 9 cents above the Zacks Consensus Estimate and higher than the year-ago earnings of 68 cents. Revenues grew 10% year over year to $5.97 billion but slightly fell short of the Zacks Consensus Estimate of $5.98 billion. The company reiterated its earnings per share guidance of $4.10-$4.20 and revenue growth expectation in mid-single digits.

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