What to Look for in Johnson & Johnson Earnings

By Chris Lange Updated Jan 13, 2:17AM EST · Published Oct 17, 12:15PM EDT

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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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.