Pharmaceutical giant Johnson & Johnson (NYSE: JNJ) has posted mixed results for the first quarter of 2022, as earnings surpassed but revenue missed estimates.
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Shares of the company rose almost 3.5% to close at $183.78 in Tuesday’s extended trading session.
Revenue & Earnings
Revenues for the quarter stood at $23.4 billion, up 5% from the same quarter last year. The growth in revenues was primarily driven by the 6.3% and 5.9% year-over-year rise witnessed in the Pharmaceutical and MedTech segments, respectively. Further, the revenue figure failed to meet the consensus estimate of $23.67 billion.
Earnings per share (EPS) for the quarter rose 3.1% year-over-year to $2.67 and surpassed the consensus estimate of $2.61 per share.
Dividend Hike
Meanwhile, Johnson & Johnson announced a quarterly dividend hike of 6.6% or $1.13. The annual dividend of $4.52 now reflects a dividend yield of 2.5% based on Monday’s closing price.
The dividend will be paid on June 7, 2022, to stockholders of record on May 24, 2022.
Outlook
For 2022, the company forecasts revenue between $94.8 billion and 95.8 billion against the consensus estimate of $99.48 billion.
Further, the company expects to post earnings in the range of $10.15-$10.35 per share. The consensus estimate for the same is pegged at $10.52 per share.
Management Commentary
The CEO of Johnson & Johnson, Joaquin Duato, said, “Our first quarter results demonstrate strong performance across the enterprise, despite macro-economic headwinds. I am incredibly proud of Johnson & Johnson’s 144,000 employees for their relentless passion and Credo-based commitment to delivering transformative healthcare solutions to patients and customers around the world. Looking ahead, I remain confident in the future of Johnson & Johnson as we continue advancing our portfolio and innovative pipeline.”
Stock Rating
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on six Buys and five Holds. JNJ’s average price target of $190.09 implies that the stock has upside potential of 3.8% from current levels. Shares of the company have grown 9.9% over the past year.
Hedge Funds’ Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in Johnson & Johnson is currently Very Positive. Moreover, the cumulative change in holdings across all 51 hedge funds that were active in the last quarter was an increase of 449,500 shares.
Conclusion
Johnson & Johnson’s first quarter results have witnessed growth over the past year. The outlook for the full year 2022 looks promising, and a hike in the quarterly dividend makes it an attractive choice for investors.
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