Earnings Continue to Soften: J&J

January 25, 2006 7:09am by

Add Johnny John to the list of "company specific" shortfalls, as J&J reported their net rose 79% — but on lower taxes; It was the top line revenue that slid on soft drug sales. (Yes, the company specific remark was sarcasm)

Let’s review the list of revenue misses, earnings shortfalls, and lowered guidance:

Alcoa
Dupont
eBay
Apple
Yahoo
Intel
IBM
Citibank
GE
JNJ

And I’m sure I’m missing a few.

OK, permabulls, time to start spinning!

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What's been said:

Discussions found on the web:
  1. DG commented on Jan 25

    BAC

  3. Michael commented on Jan 25

    Pfizer “made” its numbers thru cost cutting, not growth. In fact, many of their big patent drugs are growing at declining rates. But the way the analysts have spun it, PFE did great. Stock topping at 25, people holding on to see what Hammering Hank comes up with for the Feb 10 meeting (guidance for yr ahead).

  4. royce commented on Jan 25

    The other day I saw a headline that was something like, “Stocks Rise on Earnings News”. I thought, what did I miss?

  5. pjfny commented on Jan 25

    more stocks: BMY, CA , CL

    A consistent message of revenue short fall/ guidance !! This points to a slowing economy.
    At peak margins and peak earnings in the past and with cost pressure and a slowing economy in the future….who wants to buy peak trailing P/E’s?

  6. Mal commented on Jan 25

    Barry-

    Not sure when you left the plantation– but good luck on RCP. I am sure you will have great success running money.

  7. DG commented on Jan 25

    In addition to BAC and the afforementioned BMY, we have:

    JPM missed revenue because of lower trading
    AXP’s net income fell
    LU
    NYT (of course the newspapers are in huge trouble)
    HSY missed and said “substantial cost” increases in the future

  8. spencer commented on Jan 25

    The primary determine of profits growth is the spread between unit labor costs and prices and that seems to be narrowing as productivity growth also appears to have peaked.

  9. DG commented on Jan 25

    Well, with margins at historic highs, the real question is how companies maintain that, especially if the consumer slows as we expect.

  10. Idaho_Spud commented on Jan 25

    As Barry has pointed out before, if it weren’t for the energy sector (and share buybacks), the major indexes would have sucked eggs last quarter.

    I propose that like the CPI, we come up with a “core” index, something that ignores *earnings* caused by highly volatile food and inflation.

  11. erikpupo commented on Jan 25

    Add Juniper and Qualcomm to the “softie” list. Barry, have you asked Cody “Cult of the Bull” Willard what his thoughts are on this tech “non-slowdown”?

    What does it take for him to get that things are slowing?

  12. Idaho_Spud commented on Jan 25

    OOPS. make that core index, minus volatile food and *energy*.

  13. Barry Ritholtz commented on Jan 25

    3M Co. reported a tepid gain of 5.7% in fourth-quarter profit, while sales in the period rose 4.6%

    3M also projected first-quarter per-share earnings of $1.10 to $1.14, a little weaker than expected by Wall Street analysts.

    Given the diversity of its lines, which range from Post-it notes to medical equipment, 3M is often viewed as a benchmark for the larger U.S. economy. It is also one of the 30 stocks in the Dow Jones Industrial Average.

  14. danny commented on Jan 26

    one might argue that softee’s (MSFT) quarter was tepid.

    those rabid analysts wanted higher XBox numbers, but Softee cited a capacity constraint, yada yada…..

    It’s a shame MSFT is now a mature company; naturally its multiple has shrunk & plateaued.

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