Market News

Johnson & Johnson Posts Mixed Q3 Results; Shares Rise 2.3%

Pharmaceutical major Johnson & Johnson (JNJ) has reported mixed results for the third quarter of 2021. Following the news, shares of the company appreciated 2.3% to close at $164.10 in extended trade on Tuesday.

Johnson & Johnson reported quarterly revenues of $23.3 billion, up 10.7% from the previous year’s figure of $21 billion. The growth was primarily driven by a 13.8% year-over-year rise in sales witnessed in the `Pharmaceutical segment from $11.4 billion to $12.9 billion. The segment made up about 55.7% of the total sales for the quarter.

Other segments like Consumer Health and Medical Devices witnessed year-over-year sales growth of 5.3% and 8%, respectively.

In spite of recording year-over-year growth across all the major segments, the sales figure for the quarter failed to surpass the Street’s estimate of $23.74 billion.

The company reported quarterly earnings of $2.60 per share, up 18.2% from the year-ago quarter. Moreover, the figure topped the consensus estimate of $2.36 per share.

The company has also updated its guidance for 2021. JNJ expects its revenues to be in the range of $94.1 billion to $94.6 billion against the consensus estimate of $94.3 billion. The company expects to post earnings in the range of $9.77 per share to $9.82 per share. The consensus estimate for the same is pegged at $9.66 per share.

The CEO of Johnson & Johnson, Alex Gorsky, said, “Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health.

“In the face of evolving marketplace dynamics resulting from the effects of COVID-19 and other global trends, we have continued to demonstrate the responsiveness and agility required to meet the needs of our stakeholders, while also successfully investing in a pipeline of innovation and key commercial platforms to drive our future growth.” (See Johnson & Johnson stock chart on TipRanks)

See Top Smart Score Stocks on TipRanks >>

On October 19, Cantor Fitzgerald analyst Louise Chen reiterated a Buy rating on the stock with a price target of $215, which implies upside potential of 31.2% from current levels.

According to the analyst, the company’s expansion plans, global pharmaceutical sales, vaccine sales, medical devices sales and consumer health sales give it a strong footing to embark on a solid growth path in the future.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys and 2 Holds. The average Johnson & Johnson price target of $193 implies that the stock has upside potential of 17.8% from current levels.

Johnson & Johnson scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 13.4% over the past year.

Related News:
Equity Lifestyle Properties Reports Q3 Beat
PacWest Bancorp Slips 6.5% After-Hours Despite Beating Q3 Expectations
Accenture Acquires Xoomworks Group; Analyst Remain Bullish

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More

Latest News Feed