Johnson & Johnson Faces MedTech Challenges But Is 'On Track' To Meet 2024 Guidance: Goldman Sachs

U.S. pharma giant Johnson & Johnson JNJ will report its second-quarter 2024 earnings on Wednesday, July 17.

As per data from Benzinga Pro, analysts estimate sales of $22.29 billion and adjusted EPS of $2.71.

Based on a quarterly review of events, management’s insights on product and market dynamics, and an analysis of prescription trends, a Goldman Sachs analyst says Johnson & Johnson is on track to meet its fiscal year 2024 guidance. For the second quarter, the analyst considers both their and the market’s revenue and EPS expectations reasonable.

Goldman Sachs forecasts second-quarter sales of $22.5 billion, +6/0% on an adjusted operational basis, with adjusted EPS of $2.72.

The analyst reiterates a Neutral rating, with a price target of $160.

For the full-year guidance, the analyst says that Johnson & Johnson is well-positioned to meet or exceed the midpoint of its current range.

However, operational growth is expected to slow in the year’s second half due to the anticipated impact of biosimilar entry in Europe affecting Stelara, the company’s largest product.

There are concerns about execution against competitive challenges in the MedTech portfolio, particularly outside the Cardiovascular verticals, and these are being closely monitored compared to industry peers.

Although the analyst does not expect the company’s earnings update to offer significant new information about the outcome of the proposed plan to resolve the talc litigation (with the voting period ending on July 26), it does see a possible way to address this ongoing issue.

Earlier today, Emergent BioSolutions Inc. EBS settled with Janssen Pharmaceuticals, Inc., a unit of Johnson & Johnson, resolving disputes related to the manufacturing of Johnson & Johnson’s investigational COVID-19 vaccine.

Under the confidential Settlement Agreement and Release terms, Janssen will pay Emergent BioSolutions $50 million.

Price Action: JNJ shares are up 0.42% at $146.09 at last check Tuesday.

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