Johnson & Johnson Posts Mixed Q3 Results; Shares Rise 2.3%

Pharmaceutical major Johnson & Johnson (JNJ) has reported mixed results for the third quarter of 2021. Following the news, shares of the company appreciated 2.3% to close at $164.10 in extended trade on Tuesday.

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Johnson & Johnson reported quarterly revenues of $23.3 billion, up 10.7% from the previous year’s figure of $21 billion. The growth was primarily driven by a 13.8% year-over-year rise in sales witnessed in the `Pharmaceutical segment from $11.4 billion to $12.9 billion. The segment made up about 55.7% of the total sales for the quarter.

Other segments like Consumer Health and Medical Devices witnessed year-over-year sales growth of 5.3% and 8%, respectively.

In spite of recording year-over-year growth across all the major segments, the sales figure for the quarter failed to surpass the Street’s estimate of $23.74 billion.

The company reported quarterly earnings of $2.60 per share, up 18.2% from the year-ago quarter. Moreover, the figure topped the consensus estimate of $2.36 per share.

The company has also updated its guidance for 2021. JNJ expects its revenues to be in the range of $94.1 billion to $94.6 billion against the consensus estimate of $94.3 billion. The company expects to post earnings in the range of $9.77 per share to $9.82 per share. The consensus estimate for the same is pegged at $9.66 per share.

The CEO of Johnson & Johnson, Alex Gorsky, said, “Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health.

“In the face of evolving marketplace dynamics resulting from the effects of COVID-19 and other global trends, we have continued to demonstrate the responsiveness and agility required to meet the needs of our stakeholders, while also successfully investing in a pipeline of innovation and key commercial platforms to drive our future growth.” (See Johnson & Johnson stock chart on TipRanks)

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On October 19, Cantor Fitzgerald analyst Louise Chen reiterated a Buy rating on the stock with a price target of $215, which implies upside potential of 31.2% from current levels.

According to the analyst, the company’s expansion plans, global pharmaceutical sales, vaccine sales, medical devices sales and consumer health sales give it a strong footing to embark on a solid growth path in the future.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys and 2 Holds. The average Johnson & Johnson price target of $193 implies that the stock has upside potential of 17.8% from current levels.

Johnson & Johnson scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 13.4% over the past year.