Johnson & Johnson (NYSE:JNJ) has skyrocketed to all-time highs on making impressive strides on the development of a COVID-19 vaccine backed by a solid pipeline of drugs and a robust medical device segment. The stock is up by more than 10% heading into the fourth quarter and full-year earnings report.
JnJ earnings Record
The healthcare giant has been pretty impressive, exceeding earnings expectations in each of the four trailing quarters. A 9% earning’s surprise in the last four quarters all but affirms its credentials when it comes to topping estimates.
In the last four quarters, Johnson & Johnson has brought about $21 billion in revenues with earnings per share of about $2.2. The metrics have been growing at an impressive 1.7% and 3.8% year over year affirming strength in the core business.
Medical Device Bounce Back
In 2020, the company’s medical device segment was the hardest hit by the pandemic. Supply deals dried up as most hospitals worldwide focused on the fight against Coronavirus. While elective surgical procedures declined significantly, the segment is also believed to a have benefited from a faster than expected ramping up of medical procedures.
Similarly, JNJ is believed to have continued to outperform the market helped by increased penetration and new indications for its lead products led by Darzalex, Imbruvica, Stelara, and Erkada. Likewise, analysts expect the company to report earnings of $1.82 a share, compared to earnings of $1.88 a share reported the same quarter the previous year. Sales are expected at $21.67 billion slightly higher to $20.75 billion reported the same quarter the previous year.
In addition to the earnings report focus will be on management commentary on the progress made on the development of JnJ single dose COVID-19 vaccine. The vaccine is currently enrolled with about 45,000 participants. Preliminary results have already shown that a single dose of the vaccine can produce antibodies to fight the coronavirus in 90% of the participants.
In addition to milestones made on the development of the COVID-19 vaccine, Johnson & Johnsons remains an attractive pick for income-focused investors given its 2.5% dividend yield.