Johnson & Johnson Reports Solid Q2 Results; Ups Guidance

Global pharmaceutical, medical devices and consumer goods conglomerate Johnson & Johnson (JNJ) has reported robust second-quarter 2021 financial results on the back of strong sales growth across all business segments.

Adjusted earnings per share (EPS) increased 48.5% year-over-year to $2.48, beating the Street’s estimates of $2.26. (See Johnson stock chart on TipRanks)

Sales grew 27.1% year-over-year to $23.31 billion, surpassing analysts’ expectations of $22.19 billion. Consumer Health sales rose 10% to $3.7 billion; sales of the Pharmaceutical division climbed 14.1% to $12.6 billion; and Medical Devices sales surged 58.7% to nearly $7 billion.

Meanwhile, Johnson & Johnson raised its guidance for full-year 2021. The company expects sales to fall in the range of $93.8 billion to $94.6 billion, and EPS between $9.60 and $9.70.

Two months ago, Morgan Stanley analyst David Risinger initiated coverage on the stock with a Buy rating and a price target of $187 (10.3% upside potential).

The analyst said, “Pharma’s momentum should remain strong, MD&D should see growth accelerate against easy COVID comps given a better cadence of new product introductions and the consumer segment has durable growth prospects.”

Overall, the stock has a Strong Buy consensus based on 6 Buys. The average Johnson & Johnson price target of $193.33 implies 14.1% upside potential. The company’s shares have gained 13% over the past year.

According to TipRanks’ Smart Score rating system, Johnson & Johnson scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.

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