Johnson & Johnson’s (NYSE:JNJ) earnings report on Tuesday will set the tone for the third quarter pharma earnings, with investors looking for trend including performance in the MedTech business, guidance and impact from tariffs.
The New Brunswick, New Jersey-based pharmaceutical giant is expected to post EPS of $2.76, implying a gain of 14%, while revenue is expected to gain nearly 6% to $23.76 billion during the quarter.
“As the initial pharma to report earnings, we expect JNJ to provide commentary on macro, talc litigation, and key commercial products,” said Wolfe analyst Alexandria Hammond. Investors will also look for any details regarding J&J reported talks to buy Protagonist Therapeutics (PGTX), a biotech focused on peptide-based therapeutics.
Earlier in July, the healthcare company lifted its full-year outlook after reporting better-than-expected financials for the second quarter, thanks to favourable forex results and strong operational performance.
Seeking Alpha analysts and Wall Street are bullish and rated the stock a Buy, while Seeking Alpha’s Quant ratings consider it a Hold.
“As we enter 2H25, we think there are several levers to sustain momentum, including but not limited to the continued growth of Tremfya in Immunology, upcoming approval of Caplyta in Neuroscience, Shockwave and Abiomed’s contributions to the Cardiovascular segment (we also expect some commentary on the removal of Abiomed’s heart pump controller from the market), the Tecnis Odyssey launch in Vision driving share gain, and continued expense leveraging across the company,” said Citi analyst Joanne Wuensch.
Citi forecasts Innovative Medicine sales of $15.34 billion for Q3 and MedTech sales of $8.42 billion.
Over the last two years, Johnson & Johnson has beaten both revenue and EPS estimates 100% of the time.
Over the last three months, EPS estimates have seen 14 upward revisions, compared to three downward revisions. Revenue estimates have been revised upwards 15 times versus no downward moves.
The stock has gained nearly 32% so far this year, outperforming the 11% rise in the broader S&P 500 Index.