Johnson & Johnson

Johnson & JohnsonNYSE
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Important events

Nov 022022

A deal to get the blood flowing

Big pharma company Johnson and Johnson has its investors’ hearts pumping as it announces a new acquisition.

  • J&J has agreed to purchase heart pump manufacturer Abiomed for $16.6bn in a move to bolster its medical devices unit. The announcement sent Abiomed shares rocketing by more than 50% on Tuesday, with shareholders to receive financial payouts when certain milestones are achieved.
  • The deal’s part of a wider plan by J&J to expand its medical devices operations, with the company expected to launch a consumer health spinoff by November 2023. The acquisition is expected to be completed by the first quarter of next year.
  • J&J’s been pushing to keep its pandemic-related success moving forward, but supply chain issues since then have been putting a dampener on its growth. Although despite the concerns, analysts still expect the company’s revenue to grow by $1.5bn a year.

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Apr 202022

J&J takes its shot at earnings

Pharmaceutical giant Johnson & Johnson sets the tone for vaccine stocks’ first quarter, and investors seem keen to focus on the good news instead of the bad.

  • J&J shares opened up nearly 5% on Tuesday and closed up 3.05% after smashing its bottom end estimates with EPS of $2.67, though revenues of $23.4bn slightly missed calls for $23.6bn despite YoY growth of over 5%.
  • But there was plenty of bad news to digest. Covid is taking a backseat in global affairs (in some regions, anyway), so too is the vaccine boom that healthcare giants have enjoyed. J&J said it’ll no longer give vaccine sales guidance because of a “global supply surplus and demand uncertainty” – will other pharma companies do the same? Check out our Vaccine Stocks Spark to keep up.
  • Full year guidance went under the knife too. The firm is forecasting 2022 sales of $95.8bn on the high end, about $1bn less than its January guidance thanks to economic headwinds from higher labor, energy, and transport costs – J&J tried to ease the pain by boosting its quarterly dividend for the 60th consecutive year.
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Brady Bellini / Unsplash
Nov 152021

De-conglomeration nation

Johnson & Johnson takes a page out of GE’s book, breaking up its 135-year old pharmaceutical company.

  • J&J is splitting into two in its biggest corporate shake-up yet, spinning off its consumer division to focus on developing new pharmaceuticals.
  • Turns out drugs bring in more cash than shampoo (shocker). Its commercial side is set to generate $15bn this year compared to the $77bn the medical arm will rake in.
  • GE (GE) became 3 earlier last week, followed in quick succession by both J&J and Toshiba (6502) – looks like the days of the industrial conglomerate are numbered.
Jul 232021

JNJ releases strong Q2 earnings

Johnson & Johnson shares releases its latest earnings report with a move into positive territory in the pre-market after the pharma giant beat forecasts and hiked its earnings guidance, but shares still open in the red and stay flat for the week.

Johnson & Johnson, the parent of one of the world’s leading vaccines, is seeing all its hard work pay off with Q2 earnings that beat expectations and an upwardly revised full-year guidance. J&J beat on both the top and bottom lines, reporting Q2 earnings of $2.48 per share on revenue of $23.31 billion, compared to expectations of $2.27 in earnings per share on $22.21 billion in revenues. Its pharmaceutical business, which created its single-shot vaccine, brought in $12.59 billion in the quarter, up 17.2% from the same period the year before.

Global COVID vaccine sales reached $164 million over the quarter, and the company is now expecting that number to increase to $2.5 billion by the end of the year. J&J also raised its revenue and earnings guidance for the full year, now expecting a full-year profit of $9.50 to $9.60 per share, up from a previous forecast of $9.30 to $9.45 per share.
Apr 202021

J&J beat earnings expectations on vaccine blowout

Johnson & Johnson release Q1 earnings, reporting $100 million in quarterly sales from its COVID-19 vaccine. It’s not been a bad year so far, though clotting concerns are holding back any big price boost.

The company reported earnings of $6.20 billion, or $2.32 per share; compared to $5.80 billion or $2.17 per share in Q1 of last year. Adjusted earnings sat at $2.59 per share compared to expectations of $2.34 per share. Revenue was up almost 8% to $22.32 billion, and the company reported $100 million in Q1 sales of its Covid vaccine - although this is currently on hold in the U.S. while health regulators investigate a rare blood-clotting issue.

Last week, the Food and Drug Administration (FDA) asked states to temporarily halt the rollout of the Johnson & Johnson vaccine after reports came out of at least six women in the U.S. developing a rare blood-clotting condition that left one woman dead. The head of the FDA vaccine division said that this could be a similar reaction to the Astrazeneca vaccine concerns, which have seen the Astrazeneca option suspended in many countries. J&J lost 1.34% on the warning, although it pointed out that that no clear causal relationship has yet been found between these rare blood clots and its Covid-19 vaccine. The firm is working closely with regulators and experts to assess the data.

Johnson & Johnson still expects to deliver 100 million doses in the first half of the 2021 should the blood-clot investigation “go well”, and CFO Joseph Wolk said:

“We remain very confident and we’re hopeful the benefit-risk profile will play out.”

He also said that he’s expecting the U.S. to make its decision by the end of the week after a CDC panel meets on Friday 23 April to make a recommendation. It’s not clear if the pause will impact the company’s ability to deliver 100 million vaccines by June, especially considering the manufacturing obstacles it’s already facing after a plant run by Emergent BioSolutions ruined 15 million doses of the J&J vaccine a few weeks ago.