J&J shares rose on Tuesday amid financials above Wall Street estimates, higher dividends and an annualized financial forecast. J&J reported that sales of its COVID-19 vaccines reached $ 100 million. Investors are assessing the potential impact of the suspension of the use of the J&J vaccine in the United States.
Johnson & Johnson (JNJ), which has seen a slight increase of 7% in the past 12 months and 3.4% since the beginning of 2021, is up almost 1% in early trading on Tuesday (at the time of writing) amid the release of financial results for first quarter.
Johnson & Johnson reported that the first three months of the year, its earnings per share increased 12.6% (compared to last year’s value) to $ 2.59, which is $ 0.25 better than the analyst estimate of $ 2.34.
J&J’s total Q1 net income rose 6.9% to $ 6.2 billion.
The company’s revenue grew by 7.9% to $ 22.32 billion, which is also above the average analyst expectations of $ 22.01 billion. Statistics of J&J quarterly revenues and earnings for the last 2 years are available here.
J&J’s U.S. sales rose 3.9% to $ 11.11 billion, while international sales jumped 12.2% to $ 11.21 billion.
Most of the sales growth came from J&J’s medical device and pharmaceutical business, up 11% to $ 6.58 billion and 9.6% to $ 12.12 billion, respectively, as the company sold $ 100 million in COVID-19 vaccines. ., and clinics renewed demand for medical equipment.
J&J’s worldwide renowned consumer goods (hygiene and beauty products) revenues declined 2.3% to $ 3.54 billion, which the company attributed to a contrasting comparison with the same quarter last year, when the pandemic and quarantine restrictions began and consumers massively stocked up its products. …
Johnson & Johnson Raises Its Annual Forecasts
J&J is expected to earn $ 9.42 to $ 9.57 per share for the year, up from the previous forecast of $ 9.40 to $ 9.60 earnings per share.
The forecast for annual revenues rose from a range of $ 90.5 billion – $ 91.7 billion to $ 90.6 billion – $ 91.6 billion, corresponding to sales growth of about 9.3%.
In addition, J&J increased its quarterly dividend by $ 0.05, or nearly 5%, to $ 1.06 per share. J&J is known for increasing its dividend for 57 consecutive years, despite a string of crises over the years. Therefore, J&J shares are among the top best dividend stocks according to many investment companies.
While Johnson & Johnson’s 2000 dividend was $ 0.62 per share, by 2020 it had more than sixfold to $ 3.98.
At the same time, investors’ attention is focused on the outcome of government investigations into a single dose of J&J COVID-19 vaccine. Last week, US regulators suspended its use after cases of blood clots in six women following vaccinations.
Dr. Anthony Fauci, chief medical adviser to the White House, told NBC on Sunday that he expects Johnson & Johnson to resume use of the vaccine later this week “probably with some kind of warning, restriction or assessment.”
On Friday, a meeting of a key group of the Centers for Disease Control and Prevention is scheduled, following which recommendations will be given on the further massive use of J&J vaccine.
In a separate press release on Tuesday, J&J said it had filed an application with the Indian regulator for an additional local clinical trial of its coronavirus vaccine.
Despite the US suspension, the Philippine regulator has authorized the emergency use of COVID-19 vaccines manufactured by Johnson & Johnson and India’s Bharat Biotech.