Johnson & Johnson (NYSE:JNJ) (J&J) is gearing up to unveil its third-quarter earnings, with differing forecasts from FactSet and Estimize. According to FactSet, the company is expected to report an earnings per share (EPS) of $2.52 and revenue of $21.036 billion, both figures being lower than the previous year’s records. In contrast, Estimize predicts a slightly higher EPS of $2.58 and revenue of $21.583 billion.
This impending earnings report arrives in the midst of a challenging year for J&J. Despite gains in the Dow Jones and S&P 500 indices, the company’s stock value has experienced an 11% decline. Analyst opinions on J&J’s shares are divided, with ten buy recommendations, seven hold ratings, and one sell.
In recent developments, J&J successfully completed the spinoff of Kenvue (NYSE:KVUE), which now oversees its consumer health business. This strategic move is expected to enhance the company’s financial stability. Analysts from JPMorgan have expressed confidence in J&J’s strong fundamentals and foresee substantial growth in its MedTech portfolio as it rebounds from pandemic-related challenges.
Nevertheless, J&J remains entangled in ongoing legal disputes related to talcum powder lawsuits. These legal battles introduce an element of uncertainty to the company’s outlook. The outcome of these persistent legal issues is likely to be a pivotal factor influencing the market’s response to J&J’s Q3 earnings report.