Core Viewpoint - Johnson & Johnson is expected to report strong third-quarter financial results, continuing a trend of beating analyst estimates, with shares trading near all-time highs [1][2]. Earnings Estimates - Analysts anticipate third-quarter revenue of $23.74 billion, an increase from $22.47 billion in the same quarter last year [2]. - Expected earnings per share (EPS) for the third quarter is $2.75, up from $2.42 in the previous year [2]. - The company has consistently beaten revenue estimates for five consecutive quarters and EPS estimates for over ten quarters [2][3]. Market Sentiment - A strong second-quarter performance and raised guidance have contributed to a rally in Johnson & Johnson shares, which are up 30% year-to-date [4]. - Analysts suggest that the separation of the consumer health business (Kenvue Inc) allows the company to focus on higher growth areas like pharmaceuticals and medical devices [5]. Key Items to Watch - The second-quarter results highlighted strong growth in cancer drug sales, which increased by 24% year-over-year to $6.31 billion, offsetting a 15.4% decline in immunology sales [7]. - The MedTech unit also saw a 7.3% increase in sales to $8.54 billion, indicating a focus on innovative medicine [8]. - Guidance for full-year revenue and EPS will be closely monitored, as analysts expect the company to potentially raise these figures again [10]. Analyst Ratings and Price Targets - Recent analyst ratings include: - Morgan Stanley: Equal-Weight, price target raised from $176 to $178 - Goldman Sachs: Buy, price target raised from $186 to $212 - Citigroup: Buy, price target raised from $200 to $213 - Bernstein: Market Perform, price target raised from $172 to $193 - Bank of America: Neutral, price target raised from $175 to $198 - Wells Fargo: Upgraded to Overweight, price target raised from $170 to $212 [9]. M&A Activity - The company is reportedly in discussions to acquire Protagonist Therapeutics, which could enhance its immunology segment amid increased competition for Stelara [11].