Johnson & Johnson Expected to Report 3.2% Decline in Q1 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy JNJ?
Source: seekingalpha
- Earnings Decline Expected: Johnson & Johnson is anticipated to report a 3.2% decline in Q1 earnings on April 14, with a consensus EPS estimate of $2.68, despite a projected revenue increase of 7.8% to $23.61 billion, indicating market concerns over profitability.
- Patent Expiration Impact: The loss of exclusivity for J&J's blockbuster drug Stelara has led to a 41.5% year-over-year sales decline, with the drug contributing 6.5% to total sales in 2025, putting pressure on overall revenue.
- Future Growth Potential: Analysts highlight promising prospects for new drugs like Icotyde and Tremfya in immunology, with Tremfya growing 40% in 2025, which is expected to drive future sales growth despite current challenges.
- Strong Performance Record: Over the past two years, J&J has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, bolstering investor confidence for another solid quarter, with the stock up over 15% year-to-date.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 240.100
Low
190.00
Averages
218.50
High
240.00
Current: 240.100
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Leading Investment Scale: Taiho Ventures maintains the largest fund size among Japanese pharmaceutical CVCs, focusing on supporting innovative therapeutics startups and leveraging its R&D and business management expertise to drive the societal application of cutting-edge technologies and therapies.
- Successful Investment Cases: Over the past decade, Taiho Ventures has invested in more than 30 innovative companies developing novel therapeutics and cutting-edge healthcare technologies, achieving multiple successful exits, including Dren Bio acquired by Sanofi and Halda Therapeutics acquired by Johnson & Johnson.
- Strengthening R&D Pipeline: Taiho Ventures' first portfolio company, Arcus Biosciences, granted Taiho Pharmaceutical exclusive licenses to five pipeline programs, significantly enhancing Taiho Pharmaceutical's R&D pipeline and advancing its strategic positioning in oncology.
- Global Investment Commitment: Taiho Ventures actively invests across the U.S., Europe, and Japan, utilizing an evergreen fund structure to ensure long-term investment support, and is dedicated to collaborating closely with entrepreneurs and innovators to advance transformative healthcare technologies that address unmet medical needs.
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- Innovation-Driven Pharmaceuticals: In oncology, DARZALEX achieved $4 billion in sales with an 18% growth, while the FDA's approval of TECVAYLI plus DARZALEX FASPRO positions the regimen as a potential new standard of care, further solidifying J&J's leadership in this area.
- Robust Financial Health: The company reported net earnings of $5.2 billion for the first quarter, with diluted earnings per share at $2.14 and adjusted diluted earnings per share at $2.70, showcasing a strong foundation in profitability and cash flow.
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