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Johnson & Johnson Earnings: JNJ breaks above resistance following Q1 beat, targets $180

Johnson & Johnson Earnings: JNJ breaks above resistance following Q1 beat, targets $180

18 Apr 2023

  • Johnson & Johnson exceeded Q1 expectations in terms of profitability and revenue.
  • JNJ gains 2% on the news and moves past the $166 barrier level.
  • Sales income is up 5.6% year over year.
  • Johnson & Johnson increases their full-year forecast.

After the healthcare and consumer goods company posted first quarter adjusted earnings per share (EPS) of $2.68, 18 cents over Wall Street analysts’ projections, Johnson & Johnson (JNJ) stock increased 2% on Tuesdays premarket. Additionally, $24.7 billion in revenue exceeded expectations by $1.1 billion. The price of JNJ stock rose above the $166 resistance level.

News about Johnson & Johnson stock: 2023 forecast increased

Johnson & Johnson’s portfolio of pharmaceuticals, medical equipment, and consumer staples were in high demand, with sales growing 5.6% YoY, despite the weak US retail purchasing data from the previous week. With a 9.7% YoY increase in sales, the US saw most of this rise domestically. Just 1.8% of its foreign operations grew year over year.

Additionally, unlike many other businesses, management does not appear to see impending storm clouds. Revenue projection for the entire 2023 fiscal year was increased to a range of $97.9 billion to $98.9 billion. The top and bottom of the range were increased from previous guidance by exactly $1 billion each. The range is higher than the $97.65 billion consensus on Wall Street.

Additionally, Johnson & Johnson increased its previous guidance for adjusted earnings per share from $10.45 to $10.65 to $10.60 to $10.70. This is much more than the $10.51 forecast made by Wall Street.

According to Chairman and CEO Joaquin, “Our first quarter results demonstrate strong performance across all three segments of our business and reflect the dedication of Johnson & Johnson colleagues around the world.” With this momentum, I anticipate a year that will be full of interesting catalysts that will benefit patients and all our stakeholders in the short- and long-term.

The decision to reopen bankruptcy proceedings for its TMT subsidiary, which contains its talc-based baby powder business and was under fire for allegedly causing cancer, was made two weeks ago by the corporation, but no new information was disclosed. On April 4, the business declared its willingness to settle all claims for $8.9 billion spread over 25 years.

Stock prediction for Johnson & Johnson

The weekly chart below shows JNJ stock battling over the previous few weeks near the $166 resistance level. Exactly below that level is the 30-week moving average. JNJ stock, meanwhile, has soared to almost $169 in the premarket, even breaking above the 30-week moving average as evidence that the year’s adverse price action is finally ending. The next aim for the bulls is $180. JNJ shares encountered resistance at that price level in December. A weekly chart crossover of the Moving Average Convergence Divergence (MACD) indicator is a significantly more optimistic indication than a simple daily chart crossover.