/Johnson%20%26%20Johnson%20location%20sign-by%20JHVEPhoto%20via%20iStock.jpg)
Headquartered in New Brunswick, New Jersey, Johnson & Johnson (JNJ) researches and develops, manufactures, and sells various products in the healthcare field. Valued at a market cap of $385.1 billion, the company boasts a broad portfolio of drugs covering a wide range of areas such as neuroscience, cardiovascular & metabolism, immunology, oncology, pulmonary hypertension and infectious diseases and vaccines. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, Apr. 15.
Prior to this event, analysts project this healthcare giant to report a profit of $2.59 per share, down 4.4% from $2.71 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in each of the last four quarters. Its earnings of $2.04 per share in the previous quarter outpaced the consensus estimate by 2%.
For the full year, analysts expect JNJ to report EPS of $10.58, up 6% from $9.98 in fiscal 2024. Its EPS is expected to further grow 4.6% year over year to $11.07 in fiscal 2026.
JNJ has aligned with the S&P 500 Index’s ($SPX) 3.6% gains over the past 52 weeks, although it has outpaced the Health Care Select Sector SPDR Fund’s (XLV) marginal decline over the same time frame.
On Apr. 1, JNJ’s shares closed down 7.6% after a Texas bankruptcy judge dismissed the company's latest attempt to settle thousands of lawsuits. The lawsuits allege that J&J's baby powder and other talc-based products caused ovarian cancer. The court ruling was a major setback for the company, contributing to the sharp decline in its stock price.
On Jan. 22, JNJ released its Q4 results. It delivered adjusted EPS of $2.04 and revenue of $22.5 billion, which surpassed Wall Street estimates. Moreover, its revenue improved 5.3% from the year-ago quarter due to a rise in sales across both its reportable segments. Despite these positives, its shares plunged 1.9% on the day of the release. What disappointed investors the most was its underwhelming fiscal 2025 sales guidance. The company expects revenue in the range of $89.2 billion and $90 billion, falling short of analysts’ estimates. Additionally, while its adjusted earnings exceeded expectations, it declined 10.9% compared to the prior-year quarter, further weighing on investor sentiment.
Wall Street analysts are moderately optimistic about JNJ’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, eight recommend "Strong Buy," two suggest “Moderate Buy,” and 12 advise “Hold.” The mean price target for JNJ is $169.18 which indicates a 5.9% potential upside from the current levels.
