Analysts expect Johnson & Johnson to report a decline in earnings but a rise in revenue for Q4 2023
New York: Analysts are buzzing about Johnson & Johnson’s upcoming earnings report. They predict the company will announce earnings of $2 per share, which is a drop of about 12.7% from last year. However, revenue is expected to hit $22.54 billion, marking a 5.4% increase compared to the same quarter last year.
Interestingly, the earnings per share (EPS) estimate hasn’t changed in the last month. This shows that analysts are sticking to their guns about their predictions.
Before the earnings drop, it’s crucial to consider any shifts in projections. These changes can really influence how investors react to the stock. Studies have shown that earnings estimates often correlate with short-term stock price movements.
While many investors look at overall earnings and revenue, digging into specific metrics can provide deeper insights. So, let’s break down what analysts are forecasting for Johnson & Johnson.
For instance, they expect ‘Sales- MedTech- Total’ to reach $8.28 billion, which is a 7.9% increase from last year. Meanwhile, ‘Sales- Innovative Medicine- WW’ is projected to be $14.28 billion, up 4.1% from the previous year.
In the MedTech sector, ‘Sales- Orthopaedics- Trauma- WW’ is estimated at $765.83 million, showing a 3.4% rise. Similarly, ‘Sales- Orthopaedics- Spine, Sports & Other- WW’ is expected to be $742.98 million, just a slight increase of 0.1%.
On the oncology front, ‘Sales- Innovative Medicine- Oncology- CARVYKTI- WW’ is forecasted to hit $330.28 million, a whopping 107.7% jump year over year. For ‘Sales- Innovative Medicine- Neuroscience- SPRAVATO- WW’, analysts predict $296.88 million, which is a 44.1% increase.
Looking at cardiovascular sales, ‘Sales- MedTech- Cardiovascular- ABIOMED- WW’ is expected to be $381.54 million, up 12.2%. The ‘Sales- MedTech- Cardiovascular- Other Cardiovascular- WW’ is projected at $92.56 million, a 4% increase.
For the orthopaedics segment, ‘Sales- MedTech- Orthopaedics- Hips- US’ is estimated at $278.07 million, a 4.5% rise. The international sales for hips are expected to be $135.05 million, up 2.3%.
Lastly, ‘Sales- MedTech- Orthopaedics- Knees- US’ is projected to reach $248.98 million, showing a 2.9% increase. Analysts also expect ‘Organic Sales Growth’ to be around 6.0%, down from 7.2% last year.
In the past month, JNJ shares have gained 0.2%, while the S&P 500 has dropped by 3.3%. With a Zacks Rank of #2 (Buy), JNJ is anticipated to outperform the market soon.
