J & J Gains 3% Despite Quarterly Sales Miss

Shares of multinational healthcare giant Johnson & Johnson (NYSE: JNJ) closed nearly 3% higher on Tuesday despite the company’s fourth-quarter sales results falling short of expectations.

Adjusted EPS increased 14.5% year-over-year to $2.13, coming in just above the Street’s estimate of $2.12.

Sales grew 10.4% year-over-year to $24.8 billion, missing analyst expectations of $25.29 billion.  

The Consumer Health segment’s sales rose 1.1% to $3.7 billion, Pharmaceutical segment sales jumped 16.5% to $14.3 billion, and the Medical Devices segment’s sales climbed 4.1% to $6.9 billion.

JNJ CEO Joaquin Duato said, “Given our strong results, financial profile, and innovative pipeline we are well-positioned for success in 2022 and beyond.”

Guidance

Along with the fourth-quarter results, the company also provided guidance for full-year 2022. It expects sales to range from $98.9 billion to $100.4 billion and adjusted EPS to lie between $10.40 and $10.60.

Consensus estimates for sales and EPS stand at $97.88 billion and $10.37, respectively.

About Johnson & Johnson

New Jersey-based Johnson & Johnson produces and sells medical devices, pharmaceuticals, and consumer health products. Its brands include Band-Aid, Johnson’s Baby, Tylenol, Neutrogena, Clean & Clear, and Acuvue, among others.

JNJ stock is listed on the Dow Jones Industrial Average (DJIA).

Wall Street’s Take

Following the release of the results, Citigroup analyst Joanne Wuensch reiterated a Buy rating on the stock with a $195 price target (16.3% upside potential).

In a research note to investors, the analyst said, “Against a challenging backdrop JNJ delivered a quarter that reflected resilience and gave 2022 guidance that bracketed consensus.”

Overall, the stock has a Strong Buy consensus rating based on 6 Buys and 2 Holds. The average JNJ price forecast of $188.29 implies 12.3% upside potential. Shares have gained 2.4% over the past year.

Smart Score

Johnson & Johnson scores a “Perfect 10” on TipRanks’ Smart Score rating system. This implies that the stock has strong potential to outperform market expectations, making it one of the best growth stocks for 2022.

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