Johnson & Johnson (JNJ) Stock Price Fell on Q3 Results

The Johnson & Johnson (NYSE: JNJ) stock price fell 2.15% on Wednesday after its Q3 2023 earnings results were released. The company reported better-than-expected results and raised its guidance for the fiscal year. This is despite a decrease in demand for its COVID-19 vaccine.

In the third quarter of fiscal year 2023, the company posted earnings per share (EPS) of $2.66, surpassing estimates. Sales also showed a 6.8% increase from the previous year, reaching $21.35 billion.

J&J's pharmaceutical unit, Innovative Medicine, reported a 5.1% year-over-year increase in revenue to $13.89 billion, with a minor contribution of $41 million from COVID-19 vaccine sales. Cancer drugs like Darzalex and Erleada boosted sales.

The company's MedTech unit experienced a substantial 10% sales growth, totalling $7.5 billion, primarily driven by electrophysiology products.

J&J has revised its full-year guidance, now expecting an EPS range of $10.07 to $10.13, compared to the earlier projection of $10 to $10.10. The company also anticipates revenue from $83.6 billion to $84 billion, up from its previous forecast of $83.2 billion to $84 billion.

Despite the positive results and guidance revision, J&J's shares initially rose but later reversed course, declining by 2.15% on Wednesday. Year-to-date, the company's shares have fallen by more than 11%.

These latest quarterly results from Johnson & Johnson (J&J) are crucial since they are the company's first earnings report since the completion of the separation from its consumer health spinoff, Kenvue, in August. This separation marked a major restructuring in J&J's 137-year history, signifying a significant strategic shift for the company.

J&J adjusted its full-year sales and profit guidance as part of the separation process. The outcomes of this quarterly report provide insights into how the company is faring post-spinoff. 

Joaquin Duato, JNJ’s Chairman of the Board and CEO, said: “Johnson & Johnson delivered strong results and significant pipeline advances in the third quarter, providing a solid foundation for future sustained growth. With a sharpened focus on Innovative Medicine and MedTech solutions, Johnson & Johnson is innovating across the spectrum of healthcare and is poised to deliver the medical breakthroughs of tomorrow.”

Johnson & Johnson (JNJ) share price. 

The Johnson & Johnson (JNJ) share price fell 2.15% on Wednesday after its Q3 earnings results were released.

Following the earnings report, the JNJ price target raised to $165 from $162 at Barclays, with the firm keeping an Equal Weight rating on the stock. The investment bank explained that the strength in pharma sales, led by Stelara, was able to more than overcome a modest shortfall in MedTech compared to consensus.