Johnson and Johnson (NYSE:JNJ)
On Tuesday, before the market opens, Johnson and Johnson (NYSE:JNJ) will report its Q3 2022 results. Investors will pay close attention to the company’s forecast in light of the current uncertain macroeconomic climate.
This graph shows that although the S&P 500 has fallen by 24% this year, Johnson and Johnson stock has only fallen by 3% despite increasing interest rates, a weakening economy, and a strong currency.
Despite two projection decreases published with prior earnings announcements, the stock price has held steady. In April, the business paused sales guidance for its COVID-19 vaccine, which has received FDA approval, due to a supply glut and market uncertainties.
In its most recent earnings report in July, Johnson and Johnson stock expects flat operating margins for the year due to currency challenges, lower GAAP sales, and adjusted EPS for 2022.
The financial markets have taken notice of the worries. Analysts expect Johnson and Johnson stock to post EPS of $2.49 on sales of $23.4B. However, they have revised their predictions for fiscal 2022 EPS and revenue 14 times and 1 time, respectively, in the previous three months.
And although Johnson and Johnson stock has maintained a Buy recommendation across the board, the average price target has dropped from $187.61 to $184.13.
With a Neutral rating on the company, Bank of America this week reduced its price objective for Johnson and Johnson stock from $185 per share to $178 per share, citing a reduction in the 2022 outlook due to FX headwinds and inflationary effects.
Given the economic background stated above, the analyst Bob Hopkins predicted that Johnson and Johnson stock would “nominally decrease 2022 forecast, largely based on sustained F/X headwinds and inflationary pressure,” with the mid-to-lower end of the existing range becoming the new upper threshold.
As of July, Johnson and Johnson stock expected sales of $93.3 billion to $94.3 billion and adjusted diluted earnings per share of $10.00 to $10.10.
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Despite macro worries about the forecast, Johnson and Johnson stock rose ahead of the company’s third-quarter results announcement.
Featured Image – Megapixl © Mesteban100
Author Shariq Khan 
