When many investors think of Johnson
& Johnson (NYSE: JNJ) ,
they tend to think of a slow growth company that draws in income investors with
its 5-year average dividend yield of 3.3%. Yet shares of J&J have climbed
26% over the past 12 months -- handily outperforming the S&P 500's 16%
gain.
J&J has emerged as a major force
in all three of its business divisions -- consumer health care, medical
devices, and pharmaceuticals -- which all contributed to its 172% jump in
earnings and 8.5% revenue growth last quarter. J&J's pharmaceuticals
business was its fastest growing division, reporting 11.7% year-over-year sales
growth compared to 9.6% and 1.1% growth at its medical devices and consumer
health care businesses, respectively.
In addition, its pharmaceuticals
segment grew at a faster rate than its comparable peers Merck, Pfizer,
and GlaxoSmithKline, as seen in the following chart.
|
|
Pharma Segment Qty. Revenue
|
Year-over-year growth
|
Percentage of total sales
|
|
J&J
|
$7.0 billion
|
11.7%
|
39.1%
|
|
Pfizer
|
$12.1 billion
|
(8%)
|
93.8%
|
|
Merck
|
$9.3 billion
|
(12%)
|
84.5%
|
|
GlaxoSmithKline
|
$7.2 billion
|
2%
|
68.3%
|
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