Skip to main content

Market Overview

JPMorgan Cut Its Johnson & Johnson Forecast Before Earnings, But Why?


In a report published Monday, JPMorgan analyst Michael Weinstein discussed Johnson & Johnson (NYSE: JNJ)'s upcoming first quarter report, scheduled for Tuesday, April 14.

Weinstein noted that he is expecting a largely in-line quarter on the top line given an improved pharmaceutical performance that will offset slower growth in the Medical Devices and Consumer segments. As such, the analyst is now projecting first quarter sales of $17.28 billion, $90 million below the Street's estimates.

On the bottom line, the analyst is expecting the company to exceed consensus Cash earnings per share estimates on better operating leverage and modest gains in the Other Income line. The analyst is now expecting first quarter cash EPS of $1.54, two cents better than the Street's estimates.

Related Link: Johnson & Johnson Teams With Google On Surgery Robot Development

Looking forward, Johnson & Johnson is expected to lower its 2015 Cash earnings per share guidance as the company is facing a "challenging" year from the Olysio comp ($2 billion of 2014 sales that's going away) to the Diagnostics divestment (closed mid-year), which more than offset the Nucynta gain that is expected to be booked in the second quarter.

Moreover, Johnson & Johnson faces a currency headwind that has worsened since the company laid out its guidance on January 20.

Weinstein is now modeling full year 2015 Cash earnings per share of $6.10, down from prior estimates of $6.25.

Bottom line, shares are unlikely to outperform in 2015 absent a significant market pullback of a large accretive acquisition (which is considered unlikely).

Shares remain Neutral rated with a price target lowered to $108 from a previous $110.

Latest Ratings for JNJ

Jan 2021Raymond JamesMaintainsOutperform
Jan 2021Credit SuisseMaintainsOutperform
Jan 2021Morgan StanleyMaintainsOverweight

View More Analyst Ratings for JNJ
View the Latest Analyst Ratings


Related Articles (JNJ)

View Comments and Join the Discussion!

Posted-In: foreign exchange JPMorgan Michael Weinstein NucyntaAnalyst Color Health Care Analyst Ratings General

Latest Ratings

ICLRB of A SecuritiesInitiates Coverage On220.0
PLYAB of A SecuritiesInitiates Coverage On10.0
FNCHB of A SecuritiesInitiates Coverage On25.0
NLOKB of A SecuritiesInitiates Coverage On19.0
AFCGSeaport GlobalInitiates Coverage On25.7
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at