Shares of Johnson & Johnson (NYSE:JNJ) gained in pre-market trading after the healthcare company reported earnings for its third quarter of FY23. The company’s earnings came in at $2.66 per share, up by 19.3% year-over-year which beat analysts’ consensus estimate of $2.52 per share.
Sales increased by 6.8% year-over-year to $21.4 billion as compared to analysts’ expectations of $21.04 billion.
JNJ recognized a one-time, non-cash gain of around $21 billion in the third quarter as part of discontinued operations related to the separation of its Consumer Health business.
Looking forward, management now expects FY23 adjusted sales to clock between $84.4 billion and $84.8 billion while adjusted earnings are anticipated to range from $10.07 to $10.13 per share. For reference, analysts had forecast earnings of $10.03 per share on revenues of $84.5 billion.
Is JNJ a Good Stock to Buy Now?
Overall, analysts are cautiously optimistic about JNJ stock with a Moderate Buy consensus rating based on five Buys and 10 Holds. The average JNJ price target of $177.45 implies an upside potential of 12.6% at current levels.
