Latest news with #JNJ
Yahoo
3 days ago
- Business
- Yahoo
Johnson & Johnson's (JNJ) Dividend Track Record: Reliability in Uncertain Times
Johnson & Johnson (NYSE:JNJ) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025. A smiling baby with an array of baby care products in the foreground. Johnson & Johnson (NYSE:JNJ) has long been considered one of the most dependable dividend stocks, having increased its payouts for 63 consecutive years, including a 4.8% raise earlier this year. This consistency earns it a place among the elite Dividend Kings, a group of companies with more than 50 straight years of dividend growth. Johnson & Johnson (NYSE:JNJ)'s second-quarter results once again underscored the strength behind its dividend. During the first half of the year, the company generated roughly $6.2 billion in free cash flow after spending $6.7 billion on research and development. That amount comfortably covered its dividend obligations, which totaled $6.1 billion so far this year. Although this suggests a relatively tight payout ratio, there appears to be little cause for concern. Free cash flow is only slightly lower compared to the $7.5 billion the company posted during the same period last year. Johnson & Johnson (NYSE:JNJ) currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 3.18%, as of July 17. While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Johnson & Johnson's (JNJ) Dividend Track Record: Reliability in Uncertain Times
Johnson & Johnson (NYSE:JNJ) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025. A smiling baby with an array of baby care products in the foreground. Johnson & Johnson (NYSE:JNJ) has long been considered one of the most dependable dividend stocks, having increased its payouts for 63 consecutive years, including a 4.8% raise earlier this year. This consistency earns it a place among the elite Dividend Kings, a group of companies with more than 50 straight years of dividend growth. Johnson & Johnson (NYSE:JNJ)'s second-quarter results once again underscored the strength behind its dividend. During the first half of the year, the company generated roughly $6.2 billion in free cash flow after spending $6.7 billion on research and development. That amount comfortably covered its dividend obligations, which totaled $6.1 billion so far this year. Although this suggests a relatively tight payout ratio, there appears to be little cause for concern. Free cash flow is only slightly lower compared to the $7.5 billion the company posted during the same period last year. Johnson & Johnson (NYSE:JNJ) currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 3.18%, as of July 17. While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Globe and Mail
4 days ago
- Business
- Globe and Mail
ETFs to Gain on JNJ's Solid Q1 Earnings & Upbeat Outlook
Johnson & Johnson JNJ reported stronger-than-expected second-quarter 2025 results. The world's biggest healthcare products maker continued with its long streak of earnings beat and also exceeded revenue estimates. It also lifted its revenue guidance for this year and boosted its quarterly dividends. Shares of JNJ rallied 6.1% following the earnings announcement. Investors should tap the company's growth prospects through ETFs with the largest allocation to this diversified drug maker. These include iShares U.S. Pharmaceuticals ETF IHE, VanEck Vectors Pharmaceutical ETF PPH, Health Care Select Sector SPDR Fund XLV, iShares U.S. Healthcare ETF IYH and First Trust Nasdaq Pharmaceuticals ETF FTXH. JNJ's earnings per share came in at $2.77, which beat the Zacks Consensus Estimate of $2.66 but declined 1.8% from the year-ago earnings. Revenues grew 5.8% year over year to $23.74 billion and outpaced the Zacks Consensus Estimate of $22.80 billion (see: all the Healthcare ETFs here). Innovative Medicines sales advanced 4.9%, while sales from MedTech devices jumped 7.3%. Sales of JNJ's top-selling blood cancer treatment, Darzalex, jumped 23% to $3.5 billion, while Xarelto generated $621 million in sales, up 5.6% year over year. However, sales of psoriasis drug Stelara declined 42.7% to $1.65 billion due to the launch of several biosimilar versions. Invega Sustenna sales also dropped 5.9% to $992 million. Johnson & Johnson raised its revenue guidance for fiscal 2025 to $93.2-$93.6 billion from $91.0-$91.8 billion, indicating year-over-year growth of 5.1%-5.6% versus the prior expectation of 2.6%-3.6%. The company also lifted its adjusted earnings per share guidance to $10.80-$10.90 from $10.50-$10.70 due to a stronger top-line performance and a reduced expected impact from tariffs. The drugmaker now anticipates a $200 million tariff impact in 2025, down from its previous estimate of $400 million. Following the upbeat results, Stifel has raised its price target on Johnson & Johnson to $165.00 from $155.00, citing that multiple new product launches have driven the company's confidence. The company also lifted its quarterly dividend to $1.30 per share from $1.24, marking its 63rd consecutive annual increase. At this new rate, the annual dividend totals $5.20 per share, up from $4.96. ETFs in Focus iShares U.S. Pharmaceuticals ETF (IHE) iShares U.S. Pharmaceuticals ETF provides exposure to 36 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for a 22.7% share. iShares U.S. Pharmaceuticals ETF has $561.2 million in AUM and charges 39 bps in fees and expenses. Volume is good at about 54,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Pharma ETFs in Focus on Trump's Drug Price Overhaul). VanEck Vectors Pharmaceutical ETF (PPH) VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Johnson and Johnson occupying the second position at 10.3% of the assets. VanEck Vectors Pharmaceutical ETF has amassed $534.6 million in its asset base and trades in a good volume of about 437,000 shares a day. The expense ratio is 0.36%. VanEck Vectors Pharmaceutical ETF has a Zacks ETF Rank #3 with a Medium risk outlook. Health Care Select Sector SPDR Fund (XLV) Health Care Select Sector SPDR Fund is the most popular healthcare ETF and follows the Health Care Select Sector Index. It holds 60 securities in its basket, with JNJ taking the second spot at 7.7% of the assets. Pharma, healthcare equipment & supplies, and healthcare providers and services have a significant share at 31.2%, 24.7% and 17.9%, respectively. Health Care Select Sector SPDR Fund manages $33.8 billion in its asset base and trades in a heavy volume of around 14 million shares. The expense ratio comes in at 0.08%. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: House Passes Trump's "Big, Beautiful Bill": ETFs in Focus). iShares U.S. Healthcare ETF (IYH) iShares U.S. Healthcare ETF offers exposure to 103 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies by tracking the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index. Johnson and Johnson is the top firm, accounting for 7.5% of the total assets. In terms of industrial exposure, pharma takes the top spot at 31.1%, followed by healthcare equipment (23.6%) and biotech (20.3%). iShares U.S. Healthcare ETF has amassed $2.7 billion in its asset base while charging 39 bps in annual fees. It trades in a good volume of around 528,000 shares a day and has a Zacks ETF Rank #3 with a Medium risk outlook. First Trust Nasdaq Pharmaceuticals ETF (FTXH) First Trust Nasdaq Pharmaceuticals ETF offers exposure to U.S. companies within the pharmaceuticals industry and tracks the Nasdaq US Smart Pharmaceuticals Index. It holds 49 securities in its basket, with JNJ occupying the top spot at 7.5% of the assets. FTXH has a lower AUM of $14.6 million and an average daily volume of 14,000 shares. First Trust Nasdaq Pharmaceuticals ETF charges 60 bps in annual fees and has a Zacks ETF Rank #3. Want key ETF info delivered straight to your inbox? Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report iShares U.S. Healthcare ETF (IYH): ETF Research Reports iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports First Trust NASDAQ Pharmaceuticals ETF (FTXH): ETF Research Reports This article originally published on Zacks Investment Research (
Yahoo
5 days ago
- Business
- Yahoo
Johnson & Johnson (JNJ) Q2 Earnings and Revenues Top Estimates
Johnson & Johnson (JNJ) came out with quarterly earnings of $2.77 per share, beating the Zacks Consensus Estimate of $2.66 per share. This compares to earnings of $2.82 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.14%. A quarter ago, it was expected that this world's biggest maker of health care products would post earnings of $2.57 per share when it actually produced earnings of $2.77, delivering a surprise of +7.78%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Johnson & Johnson, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $23.74 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.13%. This compares to year-ago revenues of $22.45 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Johnson & Johnson shares have added about 7.3% since the beginning of the year versus the S&P 500's gain of 6.2%. What's Next for Johnson & Johnson? While Johnson & Johnson has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Johnson & Johnson was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.75 on $23.17 billion in revenues for the coming quarter and $10.64 on $91.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Eli Lilly (LLY), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 7. This drugmaker is expected to post quarterly earnings of $5.30 per share in its upcoming report, which represents a year-over-year change of +35.2%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. Eli Lilly's revenues are expected to be $14.47 billion, up 28.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
JNJ Begins Drug Sector Q2 Earnings With a Beat & Guidance Raise
Johnson & Johnson's JNJ second-quarter 2025 earnings came in at $2.77 per share, which beat the Zacks Consensus Estimate of $2.66. Earnings, however, declined 1.8% from the year-ago period. Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.29 per share, up 18.7% year over year. Sales of this drug and medical devices giant came in at $23.74 billion, which also beat the Zacks Consensus Estimate of $22.80 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Sales rose 5.8% from the year-ago quarter, reflecting an operational increase of 4.6% and a positive currency impact of 1.2%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 3.0% on an operational basis. Second-quarter sales in the domestic market rose 7.8% to $13.54 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 5.0% in the quarter. International sales rose 3.2% on a reported basis to $10.2 billion, reflecting an operational increase of 0.6% and a positive currency impact of 2.6%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 0.4% in the quarter. J&J's Innovative Medicines Unit Outperforms, MedTech Misses With the complete separation of the Consumer Health segment into a newly listed company called Kenvue KVUE in 2023, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. KVUE will report its second-quarter results in early August. J&J's Innovative Medicines segment sales rose 4.9% year over year to $15.2 billion, reflecting a 3.8% operational increase and a positive currency impact of 1.1%. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 2.4%. Innovative Medicines sales beat the Zacks Consensus Estimate of $14.55 billion as well as our model estimate of $14.50 billion. Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment's growth. Xarelto and Simponi/Simponi Aria sales also rose in the quarter. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by lower sales of Imbruvica and generic/biosimilar competition to drugs like Stelara and Zytiga. JNJ's Oncology Drugs' Performance Sales of blockbuster multiple myeloma medicine Darzalex rose 23.0% year over year to $3.54 billion in the quarter. Sales beat the Zacks Consensus Estimate of $3.45 billion and our model estimate of $3.44 billion. Imbruvica sales declined 4.5% to $735.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $697.0 million and our estimate of $694.8 million. Erleada generated sales of $908.0 million in the quarter, up 23.4% year over year. Erleada sales beat the Zacks Consensus Estimate of $853.0 million as well as our model estimate of $903.9 million. New drug Carvykti recorded sales of $439.0 million compared with $369 million in the previous new drug, Tecvayli, recorded sales of $166.0 million in the quarter, up 23.1% year over year, Sales of Talvey were $106 million, up 55.0% year over year. Rybrevant/Lazcluze sales were $179 million compared with $69 million in the year-ago quarter. Zytiga sales declined 11.6% to $145.0 million in the quarter due to generic competition. JNJ's Immunology Drugs' Performance Sales of the blockbuster psoriasis drug, Stelara, declined 42.7% to $1.65 billion in the quarterdue to the impact of biosimilar competition and Part D redesign. While U.S. sales of Stelara declined 41.9%, international sales declined 44.2% in the quarter. Stelara sales missed the Zacks Consensus Estimate as well as our model estimates of $1.88 billion. Several biosimilar versions of J&J's multi-billion-dollar immunology drug, Stelara, have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies have already launched Stelara biosimilars this year. Tremfya recorded sales of $1.19 billion in the quarter, up 31.0% year over year. Tremfya sales beat the Zacks Consensus Estimate of $1.08 billion as well as our model estimate of $1.09 billion. Simponi/Simponi Aria sales rose 28.6% to $690.0 million. Sales of Remicade rose 15.9% in the quarter to $455.0 million. JNJ's Neuroscience, PAH and Other Drugs' Performance In neuroscience, Spravato recorded sales of $414.0 million, up 53.3% year over year. Caplyta, added from the Apil acquisition of Intra-Cellular Therapies, recorded sales of $211 million in the quarter. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales declined 5.9% to $992.0 million in the quarter. Pulmonary arterial hypertension (PAH) drug Uptravi recorded sales of $476.0 million, up 11.7% year over year. Another PAH drug, Opsumit, recorded sales of $582.0 million, up 6.4% year over year. Xarelto sales rose 5.6% in the quarter to $621.0 million. Prezista sales declined 9.4% to $396.0 million. How Did JNJ's MedTech Segment Perform in Q2? MedTech segment sales came in at $8.54 billion, up 7.3% from the year-ago period, including an operational increase of 6.1% and a positive currency impact of 1.2%. MedTech segment sales beat the Zacks Consensus Estimate of $8.25 billion as well as our model estimate of $8.31 billion. Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 4.1%. In the MedTech segment, over the past couple of quarters, gains from recent acquisitions of Shockwave and Abiomed, as well as continued uptake of new products, have been offset by continued headwinds in Asia Pacific, specifically in China and increased competitive pressure in U.S. electrophysiology for PFA ablation catheter. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. JNJ Ups 2025 Sales and EPS Guidance Range The company raised its sales expectations for 2025 by around $2.0 billion to reflect a strong operational performance coupled with currency tailwinds. The sales guidance was raised from a range of $91.0 billion-$91.8 billion to $93.2 billion-$93.4 billion. The sales range indicates growth in the range of 5.1%-5.6% versus the prior expectation of 2.6%-3.6%. Operational sales growth is expected in the range of 4.5%-5.0% (previously 3.3%-4.3%). Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 3.2%-3.7% (previously 2.0%-3.0%). The revenue figures exclude revenues from COVID-19 vaccine sales. The adjusted earnings per share guidance was raised from a range of $10.50-$10.70 to $10.80-$10.90. On an operational, constant-currency basis, adjusted earnings per share are expected to increase in the range of 8.2%-9.2% (previously 5.2% to 7.2%). Our Take on JNJ's Q2 Results J&J kicked off the earnings season for the drug and biotech sector with earnings and sales beats. Despite the loss of exclusivity ('LOE') of Stelara, its Innovative Medicines unit once again outperformed expectations, with sales of all key drugs Darzalex, Erleada and Tremfya beating estimates. The new drugs also contributed significantly to sales. Stelara LOE hurt revenue growth by 1170 basis points in the second quarter. MedTech unit's sales also beat estimates. J&J raised its sales and EPS guidance for the year. J&J's shares rose more than 2% in pre-market trading on Wednesday in response to the earnings beat and guidance raise. So far this year, J&J's stock has risen 9.1% compared with an increase of 1.9% for the industry. Image Source: Zacks Investment Research J&J's Innovative Medicine unit is showing a growth trend. In 2025, J&J expects growth in the Innovative Medicine segment in the face of Stelara biosimilar entrants to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant. J&J considers 2025 to be a 'catalyst year,' positioning the company for growth in the second half of the decade. J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half of the year than in the first. While newly launched products should drive growth in the Innovative Medicines segment in the second half, the MedTech segment may benefit from new products and easier comps. J&J is also making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline. However, the softness in the MedTech unit, the Stelara patent cliff and the potential impact of Part D redesign will be significant headwinds in 2025. It remains to be seen how the company navigates them. The legal battle surrounding its talc lawsuits is a persistent headwind. J&J's Zacks Rank J&J currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
