Johnson & Johnson Q2 Earnings Preview: Can New Drugs Lift Sagging Stock?
Portfolio Pulse from Chris Katje
Johnson & Johnson (NYSE: JNJ) is set to report its Q2 earnings on July 17. Analysts expect a revenue decline to $22.31 billion from $25.53 billion YoY and EPS of $2.70, down from $2.80. The company has a strong track record of beating estimates. Key areas to watch include the performance of the psoriasis drug Stelara and the medical devices segment. Analysts have mixed views, with Goldman Sachs maintaining a Neutral rating and a $160 price target.
July 16, 2024 | 7:07 pm
News sentiment analysis
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POSITIVE IMPACT
Stifel analyst has a Buy rating on Alcon, seeing potential market share gains in the intraocular lens segment. JNJ's new Odyssey lens could cannibalize its own products, potentially benefiting competitors like Alcon.
Alcon could benefit from JNJ's internal competition between its own products, potentially gaining market share in the intraocular lens segment.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Stifel analyst has a Buy rating on RxSight, expecting its LAL to gain overall IOL market share in 2025. JNJ's internal competition could benefit RxSight.
RxSight is expected to gain market share in the intraocular lens segment, benefiting from JNJ's internal competition between its own products.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
Johnson & Johnson is expected to report Q2 revenue of $22.31 billion and EPS of $2.70, both down YoY. Key areas to watch include the performance of Stelara and the medical devices segment. The company has a strong track record of beating estimates.
The expected decline in revenue and EPS could be a concern, but JNJ's strong track record of beating estimates and potential growth in medical devices and new drugs could offset this. The market reaction is likely to be neutral unless there are significant surprises.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100