4 Analysts Takeaways From Johnson & Johnson's Quarterly Results: What Investors Need To Know

Johnson & Johnson JNJ reported a 3% growth in net sales to $24.02 billion, surpassing the consensus estimate of $23.81 billion, and a 4.4% growth in adjusted earnings to $2.59 per share, beating Street expectations of $2.57 per share.

Raymond James On Johnson & Johnson: Analyst Jayson Bedford maintained an Outperform rating, while reducing the price target from $196 to $192.

Although the quarterly results were “noisy,” they trended in the “right direction,” analyst Bedford wrote in a note. “2Q was a bit stronger than we expected (Pharma/Consumer),” he added.

“MedTech growth should accelerate in 2H22, off a soft’ish 2Q (part China lockdown-driven),” the analyst noted.

Wells Fargo On Johnson & Johnson: Analyst Larry Biegelsen reiterated an Overweight rating and a price target of $195.

“The guidance implies a slight sales and EPS growth acceleration in 2H vs. 1H, as the market continues to recover, COVID restrictions ease, supply chain improves, and certain price increase benefits materialize,” Biegelsen said in a note.

“For 2023, macro headwinds like FX and inflation are expected to continue, but we would expect positive underlying growth momentum to continue,” he added.

RBC Capital Markets On Johnson & Johnson: Analyst Shagun Singh said the company’s results were “mixed.”

Johnson & Johnson reported its revenue and EPS ahead of expectation, Singh mentioned. “By segment, results were driven by a beat in vision, offset by slight misses in interventional solutions, orthopedics, and surgery,” he added.

Atlantic Equities On Johnson & Johnson: Analyst Steve Chesney maintained a Neutral rating while reducing the price target from $174 to $165.

“JNJ posted below expectation results for both the Pharma (ex-COVID vaccine) and Medtech sides of the business,” Chesney said in a note. “Higher and more persistent inflation is also now expected to remove the previously expected FY22 op. margin expansion and possibly impact FY23,” he added.

JNJ Price Action: Shares of Johnson & Johnson had risen by 0.30% to $172.21 at the time of publication Wednesday morning.

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