On Tuesday, Johnson & Johnson (JNJ stock) said that it had beaten Wall Street projections for quarterly sales and earnings on the strength of high demand for its cancer medicine Darzalex. The company also projected that supply-chain challenges in its consumer segment would ease in the next year.
JNJ Stock Price Prediction
The United States health giant, which also distributes medical equipment and consumer health items such as bandages from Band-Aid and the pain reliever Tylenol, has narrowed the range of its adjusted profit prediction for the entire year. During the premarket hours, its stock price increased by 1.5%, reaching $169.01 per share.
In reaction to rising inflation, Johnson & Johnson has increased pricing in its consumer health segment, which the company plans to separate into a separate company in the middle to late 2023. The business gave indications on Tuesday that supply-chain challenges, which were responsible for driving up expenses at the unit, were projected to diminish in the next year.
In an interview with Reuters, Chief Financial Officer Joseph Wolk said, “I would say that while no business, no sector is fully immune to a recession, I think healthcare is considerably more resilient than others.” “I would say that while no firm, no industry is entirely immune to a recession,”
The business anticipates that the negative impact of inflation would lessen somewhat in the next year, but it has issued a warning that the increased costs of inventory that was created in 2022 might weigh on profit in 2023.
According to the corporation, an increase in the value of the dollar will result in a decrease of between 40 and 45 cents in the adjusted earnings for the year 2023.
In the third quarter, sales in the pharmaceuticals division of the firm, which accounts for the majority of its revenue, increased by 2.6% to reach $13.21 billion. According to the results of a poll conducted by Refinitiv, six industry experts’ predictions ranged from $13.03 billion to $13.03 billion.
The anti-cancer medicine Darzalex saw its revenue increase by 29.8%, reaching $2.05 billion.
As a result of increased demand for contact lenses and solutions to heal wounds, the medical devices division recorded a 2.1% increase in revenues, which brought the total to $6.78 billion.
Shares of competing medical device manufacturers such as Edwards Lifesciences and Medtronic rose by between 1 and 2 percentage points as a result of the results from Johnson & Johnson (JNJ stock), which was the first company in either the pharmaceutical or medical device industries to report earnings for the third quarter.
According to Danni Hewson, a financial analyst at AJ Bell, “Them’s all about the product, and Johnson & Johnson has some big headline grabbers that have helped it navigate recent stormy waters.” “It’s all about the product,”
According to statistics provided by Refinitiv IBES, J&J said that their overall sales increased by 1.9% to $23.79 billion in the third quarter, above analysts’ expectations of $23.34 billion.
J&J had earnings of $2.55 per share, which was above analysts’ expectations of $2.47 per share.
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Author Valerie Remorosa 
