What to Watch When Johnson & Johnson Reports Tomorrow

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Johnson & Johnson (NYSE: JNJ) is scheduled to report its most recent quarterly results before the markets open on Tuesday. The consensus estimates are calling for $2.43 in earnings per share (EPS) and $20.29 billion in revenue. The second quarter of last year reportedly had $2.10 in EPS and $20.83 billion in revenue.

In the first quarter, consumer worldwide operational sales were driven by over-the-counter products (including Tylenol analgesics, digestive health products and international anti-smoking aids) and Neutrogena beauty products, primarily offset by lower sales of baby care products. Overall consumer sales decreased 2.4% to $3.32 billion year over year.

Worldwide Medical Devices operational sales were driven by the growth of electrophysiology products in the Interventional Solutions business, Acuvue contact lenses in the Vision business, biosurgicals in the Advanced Surgery business and wound closure products in the General Surgery business. At that time, Medical Devices sales decreased 4.6% to $6.46 billion.

Finally, pharmaceutical worldwide operational sales were driven by a number of biologics and biosimilars including Stelara, Imbruvica, Darzalex, Tremfya, Erleada, Remicade and Zytiga to name a few. First-quarter pharmaceuticals sales increased 4.1% to $10.24 billion.

Excluding Monday’s move, Johnson & Johnson had underperformed the broad markets, with its stock down 4% year to date. In the past 52 weeks, the stock was up closer to 6%.

A few analysts weighed in on the firm ahead of the report:

  • Credit Suisse has an Outperform rating and a $156 price target.
  • Barclays has a Hold rating with a $140 price target.
  • Goldman Sachs has a Buy rating.
  • Wells Fargo’s Outperform rating comes with a $157 price target.
  • BMO Capital Markets has an Outperform rating and a $157 target.

Shares of Johnson & Johnson traded up 0.5% at $135.01 on Monday, in a 52-week range of $121.00 to $148.99. The consensus price target is $149.17.


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