Health and Healthcare

What to Look for in Johnson & Johnson Earnings

Chris Lange

Published: October 17, 2016 12:15 pm

Last Updated: January 13, 2020 2:17 am

Johnson & Johnson (NYSE: JNJ) is set to release its most recent earnings report before the markets open on Tuesday. With a diverse product base and a very popular and solid brand, this is among the most conservative big pharmaceutical play. It is one the top market cap stocks in the health care sector.

The consensus estimates from Thomson Reuters are $1.65 in earnings per share (EPS) and $17.71 billion in revenue. The same period of the previous year reportedly had $1.49 in EPS on $17.10 billion in revenue.

Recently, Janssen Biotech, a unit of the company, announced that the U.S. Food and Drug Administration (FDA) has approved Stelara for the treatment of moderately to severely active Crohn’s disease in adults who have failed or were intolerant to treatment with immunomodulators or corticosteroids but never failed treatment with a tumor necrosis factor blocker, or who failed or were intolerant to treatment with one or more TNF blockers.

In its most recent earnings report, the company said that it saw notable strength in its Pharmaceuticals business due to the continued success of new products, as well as achieved significant clinical milestones, advancing its robust pipeline. In the Consumer business, the company has been executing strategic portfolio decisions to expand market leadership in key segments, and in Medical Devices, it is continuing to accelerate growth driven by new product launches and transforming our commercial models.

Prior to the release of the earnings report, analysts weighed in on Johnson & Johnson:

• Credit Suisse reiterated a Neutral rating with a $123 price target.
• Jefferies has a Hold rating and a $115 price target.
• Leerink Swann reiterated a Buy rating.
• BTIG Research reiterated a Neutral rating.
• Deutsche Bank reiterated a Buy rating with a $142 price target.
• RBC Capital Markets reiterated an Outperform rating with a $133 price target.
• BMO Capital Markets reiterated an Outperform rating with a $132 price target.

In 2016 thus far, Johnson & Johnson has outperformed the broad markets with the stock up nearly 17%. Over the past 52 weeks, the stock is up closer to $25%.

Shares were trading at $118.08 on Monday, with a consensus analyst price target of $124.50 and a 52-week trading range of $94.28 to $126.07.