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All eyes are on Johnson & Johnson as it reports first quarter results


JOhnson & Johnson (JNJ) will release its first-quarter 2022 financial results on April 29.

The company has been active in the healthcare industry for a long time and provides products in the consumer, pharmaceutical and medical device segments.

The company posted strong results in the most recent fourth quarter, with revenue and net income increasing year over year. Sales rose 10.4% year-over-year to $24.8 billion, while adjusted EPS improved 14.5% to $2.13.

With a market cap of $473.7 billion, JNJ stock has risen 14% in value over the past year. Let’s take a look at how the company is expected to perform this quarter.

First trimester expectations

Analysts said Johnson & Johnson is expected to report adjusted earnings of $2.59 per share and revenue of $24.8 billion in the first quarter.

JNJ CEO Joaquin Duato expressed confidence in the company’s performance this year. During the fourth quarter conference call, Duato said, “Given our strong results, financial profile and innovative pipeline, we are well positioned for success in 2022 and beyond.”

Positive analyst view

Raymond James analyst Jayson Bedford is bullish on Johnson & Johnson ahead of first-quarter reports.

Johnson & Johnson’s growth profile, according to the analyst, is supported by strong pharmaceutical growth and improving technology growth in medicine. Additionally, Bedford believes that JNJ’s diversified portfolio provides downside protection in a volatile market.

Bedford maintained his Buy rating on the company and raised the price target from $185 to $195.

Investors also remain bullish on the stock. According to the Stock Investors tool, 3.2% of investors holding portfolios on TipRanks have accumulated JNJ stock in the last 30 days. Meanwhile, hedge funds increased their holdings of JNJ shares by 449,500 shares in the last quarter.

The Taking of Wall Street

However, not all experts think the stock is a good investment right now.

On TipRanks, Johnson & Johnson stock commands a Moderate Buy consensus rating based on 6 buys and 5 takes. As for price targets, JNJ’s average price target of $188.73 implies nearly 5% upside potential from current levels.

All eyes are on Johnson & Johnson as it reports first quarter results

Conclusion

Johnson & Johnson stock is doing well, thanks to a strong product portfolio and a profitable revenue mix. However, macroeconomic events such as the Russian-Ukrainian conflict and recent COVID-19 lockdowns in China may have impacted JNJ’s performance in the first quarter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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