Johnson & Johnson to report earnings on Oct 17. Here’s what to look for

After reporting better-than-expected quarterly earnings consistently for over a decade, healthcare behemoth Johnson & Johnson (NYSE: JNJ) is preparing to release its third-quarter results next week. The company recently announced the rebranding of its iconic logo to reflect its focus on global healthcare.

JNJ has been one of the best-performing Wall Street stocks, but 2023 has not been a good year for the stock so far. It has lost about 44% in the past ten months. A good thing about the dip is that the stock has become affordable to more investors. Being a dividend king, JNJ is a favorite among long-term investors. After the latest dividend hike, it offers a yield of 3%.

Q3 Report Due

September-quarter results are expected to be out on October 17 before the opening bell, amid expectations for a mixed outcome. It is widely estimated that Q3 earnings increased 13% from last year to $2.51 per share while revenues declined 11.5% to $21.04 billion.

From Johnson & Johnson’s Q2 2023 earnings call:

“Given the strong momentum in our pharmaceutical business and the upcoming clinical milestones mentioned earlier, we remain very confident in our ability to meet our 2025 pharmaceutical sales target of $57 billion. Looking ahead, we have many important catalysts for the remainder of the year that can drive meaningful near and long-term value. Beyond the separation, in the near term, we are continuing to drive performance in Medtech, with better commercial execution and recently launched innovative products being a significant factor in driving the continued higher growth trajectory across the Medtech business.”

In the second quarter, all three operating segments, namely Consumer Health, Pharmaceutical, and MedTech, grew, driving up total sales to $25.5 billion. That translated into an 8% increase in adjusted earnings to $2.80 per share. Anticipating the momentum to continue in the second half, the company raised its full-year guidance for adjusted operational sales to the range of $99.3 billion to $100.3 billion. The forecast for full-year adjusted earnings per share has been raised to the $10.70-10.80 range.

Reorganization

Earlier this year, the New Brunswick, New Jersey-based company separated its consumer health division Kenvue, making the latter a fully independent entity. More recently, Johnson & Johnson dropped its 136-year-old logo and adopted a more modern one. The company also renamed the Janssen pharmaceutical business.

On Tuesday, shares of Johnson & Johnson traded near $160 and closed the session slightly lower.