Key Stats for Johnson and Johnson Stock
- Price change for Johnson and Johnson stock in the last 6 months: 4%
- $JNJ Stock Price as of Oct. 13: $249
- 52-Week High: $281
- $JNJ Stock Price Target: $280
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What Happened?
Johnson & Johnson (JNJ) beat third-quarter estimates on Tuesday, but the stock still fell because sales in its medical devices business, MedTech, were weak.
- Total revenue was $25.4 billion, above the $25.37 billion analysts expected.
- Adjusted earnings were $2.59 per share, $0.07 above estimates.
MedTech sales rose 2.5% to $8.6 billion, below analyst estimates of $8.71 billion. It was the second straight quarter of misses.
Sales outside the U.S. were basically flat. The company pointed to the Middle East conflict, austerity in Europe and pricing pressure in China.
MedTech chief Tim Schmid said the results fell short of the company’s own standards.
Drug sales were strong.
- Pharmaceutical sales rose 7.7% to $16.76 billion.
- Tremfya jumped 68% to $2.4 billion, beating estimates.
- Stelara fell 54% to $716 million, but that was still above expectations.
- Darzalex rose about 16% to $4.24 billion, short of the $4.4 billion estimate.
Reported earnings were much lower too. Net earnings were $210 million, or $0.09 per share, versus $2.12 a year ago.
The company said a proposed talc settlement and deal costs totaling about $7 billion hit the quarter.
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What the Market Is Telling Us About Johnson and Johnson Stock
Investors focused on MedTech, not the beat. Johnson & Johnson stock fell sharply, and other device makers slipped too.
Boston Scientific dropped nearly 3% and Intuitive Surgical about 2%. One analyst said it is hard to apply J&J’s problems to the whole sector.
He pointed to company-specific issues like China supply and the planned orthopedics spin-off.
The company still raised its outlook. It now expects full-year sales of about $101.2 billion, up from $101.1 billion. Its adjusted EPS midpoint is now $11.10, up from $11.04.
Management also said it is leaning toward spinning off its orthopedics unit, DePuy Synthes. It is on track for mid-2027.
One portfolio manager said weak device valuations may have made a sale harder.
For now, Johnson & Johnson stock is caught between two stories. Drugs are growing fast, while devices outside the U.S. are lagging.
Management says U.S. MedTech growth was nearly 5%. The next update comes at the company’s Enterprise Business Review on December 8.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
