Johnson & Johnson Shares Hold Steady After Q1 Earnings, Analysts Optimistic About Future

On Tuesday, Johnson & Johnson JNJ reported first-quarter adjusted EPS of $2.71, up 12.4% year over year, beating the consensus of $2.64.

The pharma giant reported sales of $21.38 billion, up 2.3% year over year, almost in line with the consensus of $21.39 billion. Operational growth was 3.9%, and adjusted operational growth was 4.0%.

After good earnings results, Cantor Fitzgerald remains positive on Johnson & Johnson’s stock. 

The analyst writes that numerous positive data releases and approvals for new uses of existing drugs are anticipated to boost Johnson & Johnson stock. 

Cantor notes that the market is undervaluing the potential peak sales of Taris, Carvykti, Mariposa, nipocalimab, JNJ-2113, and other products. 

Additionally, the pharma/medtech giant aims to lead in Innovative Medicines and MedTech, seeking to become the top player in these fields. 

While the market sees Johnson & Johnson as strong in its sectors, it doesn’t yet perceive it as the best. 

Cantor maintains the Overweight rating with a price target of $215.

Also Read: Johnson & Johnson’s Carvykti Stands Ahead Of Bristol Myers’ Rival Blood Cancer Therapy With FDA Approval For Wider Population.

Goldman Sachs noted several variances in pharmaceutical performance compared to their expectations. Stelara fell short by 5% compared to GS estimates and 4% compared to consensus. Xarelto was notably below expectations, with a difference of 9% and 7%, respectively. 

However, Tremfya showed a slight upside, surpassing expectations by 3% and 2%.

The Multiple myeloma franchise performed well in the oncology sector, with Darzalex achieving a strong 22% year-on-year growth. 

Carvykti, however, was disappointed with flat sequential growth and a decline of 16% compared to GS estimates and 13% compared to consensus. Management attributed this to the phasing of orders, expecting order trends to improve, especially with the recent label expansion.

Price Action: JNJ shares are down 0.13% at $144.26 on the last check Wednesday.

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