'Sunshine and Blue Skies' Ahead For Johnson & Johnson (JNJ) Following Strong Q2 Beat

July 21, 2021 9:53 AM EDT
Get Alerts JNJ Hot Sheet
Price: $171.79 +1.06%

Rating Summary:
    17 Buy, 10 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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Earlier today, Johnson & Johnson (NYSE: JNJ) reported a strong Q2 beat both on the top and bottom lines: EPS of $2.48, $0.22 better than the analyst estimates of $2.26, and revenues of $23.31B versus the consensus estimate of $22.19B.

The company also revised its full-year guidance to the upside: FY2021 EPS of $9.60-$9.70, vs consensus of $9.50 and FY2021 revenue of $93.8-94.6B, versus the consensus of $91.3B.

Cantor Fitzgerald analyst Louise Chen notes that JNJ’s diversified business model delivers on all fronts as the “sales exceeded FactSet consensus across each business division (Pharma, Med Device, and Consumer) as well as for key Pharma drugs (Stelara, Tremfya, Darzalex, Imbruvica)”, and highlights that the “strong 2Q21 performance was led by the above market growth of its Pharma business and recovery in Medical Devices.”

The analyst continues to model further expansion and expects upcoming earnings revisions higher as the reiterates the “Overweight” rating on the shares and $200 price target.

Joshnua Jennings at Cowen holds a similarly optimistic view and believes that “operational revenue growth outperformance suggests stronger-than-anticipated recovery trends.“

The analyst wants to hear “updates regarding the trends each business unit is experiencing especially in June and early July as well as the drivers of the positive revisions to the 2021 guidance ranges” but expects that “positive investor sentiment should continue to build.”

Cowen reiterates an “Outperform” rating and $195 price target.

JNJ shares are holding mostly flat following the Q2 report.

Written by Vlad Schepkov | Vlad@StreetInsider.com



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