Core Insights - Johnson & Johnson (JNJ) is set to report its fourth-quarter and full-year 2025 results on January 21, with consensus estimates for sales at $24.14 billion and earnings at $2.50 per share [1] - The earnings estimates for 2025 have slightly decreased from $10.87 to $10.83 per share, and for 2026 from $11.48 to $11.46 per share over the past 60 days [1] Earnings Estimates - Current earnings estimates for Q1, Q2, FY 2025, and FY 2026 are $2.49, $2.77, $10.83, and $11.46 respectively, showing a downward trend in estimates over the past 60 days [2] - JNJ has a history of exceeding earnings expectations, with an average earnings surprise of 3.75% over the last four quarters [2] Business Segment Performance - The Innovative Medicine segment is expected to show growth driven by key products like Darzalex, Tremfya, and Erleada, with sales estimates of $3.74 billion, $1.36 billion, and $936 million respectively [5] - The MedTech business has improved due to acquisitions and is expected to continue strong performance in cardiovascular and surgical units, with a sales estimate of $8.71 billion [10][11] Challenges and Competition - The launch of several biosimilars for Stelara has negatively impacted its sales, with an estimated decline of 1070 basis points in the third quarter and expected further decline in the fourth quarter [7] - Sales of Imbruvica are anticipated to decline due to competitive pressures and the redesign of Medicare Part D, with an estimate of $670 million [8][9] Future Outlook - JNJ plans to provide an updated financial outlook for 2026, expecting over 5% revenue growth, which is higher than the previous consensus estimate of 4.6% [12] - The company has advanced its pipeline significantly, with 10 new products expected to potentially deliver peak sales of $5 billion [22] Stock Performance and Valuation - JNJ shares have outperformed the industry, rising 48.7% over the past year compared to the industry growth of 24.1% [15] - The stock is currently trading at a price/earnings ratio of 19.01, higher than the industry average of 17.73 and above its five-year mean of 15.65 [18] Investment Considerations - JNJ's diversified business model, strong cash flows, and consistent dividend increases over 63 years make it a compelling investment despite current challenges [20][24]

Core Viewpoint - Johnson & Johnson (JNJ) is set to report its second-quarter 2025 results on July 16, with sales and earnings estimates of $22.79 billion and $2.66 per share respectively. The earnings estimates for 2025 and 2026 have seen slight increases over the past month [1][2]. Group 1: Earnings Performance - JNJ has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 5.71%. The most recent quarter showed a surprise of 7.78% [3][4]. - The company has an Earnings ESP of +2.40% and a Zacks Rank 2 (Buy), indicating a strong likelihood of a positive earnings surprise [4]. Group 2: Sales Drivers and Challenges - Sales in JNJ's Innovative Medicines segment are expected to be driven by key products like Darzalex, Tremfya, and Erleada, with projected sales of $3.45 billion, $1.08 billion, and $903.9 million respectively [6][7]. - The sales of Stelara are anticipated to decline due to biosimilar competition, with estimates pegged at $1.88 billion [8][9]. - The MedTech segment faces challenges in China due to a volume-based procurement program, but growth is expected from newly acquired businesses like Abiomed and Shockwave [12][13]. Group 3: Strategic Developments - JNJ's acquisition of Intra-Cellular Therapies for approximately $14.6 billion enhances its presence in the neurological and psychiatric drug market [24]. - The company is navigating significant headwinds, including the impact of the Stelara patent cliff and ongoing legal battles related to talc lawsuits [25][24]. Group 4: Stock Performance and Valuation - JNJ's stock has risen 10.3% this year, outperforming the industry and the S&P 500, with a current price/earnings ratio of 14.42, slightly below the industry average [16][19]. - The company is viewed as reasonably valued, with expectations for operational sales growth to accelerate in the second half of 2025 and beyond [27][19].

Core Viewpoint - Johnson & Johnson (JNJ) is set to report its first-quarter 2025 results on April 15, with sales and earnings estimates at $21.66 billion and $2.57 per share respectively. The earnings estimates for 2025 and 2026 have seen slight declines over the past 60 days [1]. Group 1: Earnings Performance - JNJ has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 4.43%. The last reported quarter showed a 2.0% earnings surprise [5]. - The company currently has an Earnings ESP of -2.53% and a Zacks Rank of 3 (Hold), indicating a mixed outlook for the upcoming earnings report [6]. Group 2: Sales Estimates and Drivers - Sales in JNJ's Innovative Medicines segment are expected to be driven by strong performances from key products like Darzalex, Tremfya, and Erleada, with respective sales estimates of $3.13 billion, $939.0 million, and $817.0 million [7][8]. - The sales estimate for the Innovative Medicine unit is $13.46 billion, while the MedTech segment is estimated at $8.14 billion, reflecting challenges in year-over-year comparisons [12][14]. Group 3: Competitive Landscape - The launch of biosimilars for Stelara is anticipated to impact its sales significantly, with estimates for Stelara sales at $1.64 billion [9][10]. - The MedTech business is facing headwinds in the Asia Pacific region, particularly in China, due to government cost containment efforts and competitive pressures [13]. Group 4: Strategic Developments - JNJ's diversified business model has been strengthened by the recent acquisition of Intra-Cellular Therapies for approximately $14.6 billion, enhancing its presence in the neurological and psychiatric drug market [24]. - The company is making progress with its pipeline and has been active in mergers and acquisitions, which is expected to bolster growth in its Innovative Medicine segment [23]. Group 5: Legal and Market Sentiment - Ongoing legal battles related to talc lawsuits have created a bearish sentiment around JNJ's stock, with a recent bankruptcy court ruling rejecting its proposed settlement plan [26]. - Despite potential challenges, JNJ has shown steady revenue and EPS growth, suggesting a long-term positive outlook for investors [27].