Johnson & Johnson (NYSE: JNJ) has confirmed the earnings release date for its Q3 2021 results to be October 19, 2021, before the market open.
What to look for
The company is expected to deliver YoY earnings increase on high revenue when it releases earnings for the quarter ended September 30, 2021. In Q2, the company exceeded expectations across all business units. It is expected to post exceptional results for the current quarter under review as market recovery continues to impact growth across the consumer health, medical devices, and pharmaceutical businesses.
Earnings: Stockearning’s Estimated EPS for the healthcare products manufacturer for Q3 2021 is expected to be $2.37 per share, representing a YoY increase of 7.7%. Historical EPS Performance for the past 12 quarters shows that the company has topped estimates in all quarters (100%). In Q2 2021, the company reported EPS of $2.48 per share relative to an EPS estimate of $2.28 per share.
Revenue: In Q2, the company reported revenue of $23.3 billion, representing a 27.1% YoY increase. Global pharmaceuticals sales were $12.6 billion, while medical devices and consumer health sales were $7 billion and $3.7 billion, respectively. For the third quarter, the company expects revenue to increase 12.1% YoY to $23.62 billion.
Stock movement: Since the last earnings release, Johnson & Johnson stock has been DOWN 5.5%. The share price has been DOWN 23 times out of the past 47 quarters following the earnings release. So, the historical price reaction suggests a 46% chance of the share price going DOWN after the company releases Q3 2021 earnings. According to the Stockearning algorithm, the predicted stock move on the first day is 1%, while the predicted move on the seventh day is 2%.
What analysts are saying
Morgan Stanley analysts Matthew Harrison downgraded Johnson & Johnson stock from "Buy" to "Hold" but kept his target price of $187. The analyst thinks the company is offering robust financial results, but there is little newsflow in the near term to drive shares higher following the run-up of the stock in recent months. Harrison told investors that the next big day for JNJ will be its Pharma Day on November 18.
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