Johnson & Johnson (JNJ) is set to report its Q2 2024 earnings on July 17, with expected revenue of $22.5 billion and earnings of $2.72 per share, in line with consensus estimates. The company is expected to benefit from strong MedTech sales and continued growth in pharmaceuticals, driven by drugs like Darzalex, Erleada, and Tremfya. JNJ stock has shown little change in recent years, with volatile performance compared to the S&P 500 index. While JNJ underperformed the index in 2021 and 2023, it has room for growth with a valuation estimate of $180 per share.
In the uncertain macroeconomic environment with high oil prices and elevated interest rates, JNJ could face challenges similar to previous years or see a strong jump in performance. The company’s valuation suggests a 20% upside potential from its current price. In Q1, J&J reported revenue of $21.4 billion, with growth in both its pharmaceuticals and MedTech businesses. Sales excluding the Covid-19 vaccine saw significant growth, driven by market share gains for key drugs like Darzalex and Erleada. However, Stelara is expected to face biosimilar competition later this year.
In the upcoming quarter, JNJ is expected to continue benefiting from its multiple myeloma treatment, Darzalex, along with new drugs like Carvykti and Spravato. The company’s MedTech business should also see growth due to an increase in global procedure volume. While there are near-term challenges, including biosimilar competition for Stelara, JNJ is expected to navigate well in Q2. The stock is down 5% year-to-date, compared to a 20% rise in the S&P500 index, indicating that potential headwinds may already be priced in.
Overall, JNJ stock shows potential for growth, but it is essential to compare the company’s performance with its peers to assess its standing in the market. Investors can find valuable comparisons for companies across industries at Peer Comparisons and consider investing in Trefis Market Beating Portfolios. Johnson & Johnson’s performance in Q2 will provide insights into its future prospects and its ability to navigate challenges in the pharmaceutical and MedTech sectors.
