Johnson & Johnson Poised For A Muted Q2?

Johnson & Johnson stock (NYSE: JNJ) will report its Q2 2023 results on Thursday, July 20. We expect the company’s revenues to come in at $24.6 billion, marginally below the consensus estimate of $24.7 billion. This would mark year-over-year growth of about 2%. Earnings will likely come in at about $2.60 on a per-share and adjusted basis, broadly aligning with the $2.62 consensus estimate and the $2.59 figure the company reported in the prior-year quarter. See our interactive dashboard analysis on Johnson & Johnson Earnings Preview for more details on how the company’s revenues and earnings will likely trend for the quarter. So, what are some of the trends that are likely to drive J&J’s results?

The company will likely continue to benefit from market share gains for some of its drugs, including Darzalex, Erleada, and Tremfya. This will help offset the decline in Remicade sales, which faces biosimilar competition. Its MedTech business should benefit from an overall rise in procedure volume and its Abiomed
ABMD
acquisition last year. Looking at Q1 2023, Johnson & Johnson’s revenues were up 6%, led by a 7% rise in MedTech and Consumer Healthcare, while Pharmaceuticals sales were up 4%. Looking at the bottom line, J&J reported earnings of $2.68 per share on an adjusted basis in Q1, compared to the $2.67 figure in the prior-year quarter, as the net margin declined 180 bps to 28.6% in Q1.