Johnson & Johnson Reports Quarterly Financial Results

Johnson & Johnson (ticker: JNJ) is set to release its quarterly financial results on Tuesday morning. This will be the company's first report since the separation of its consumer health division over the summer.

Updated Financials and Guidance

In late August, Johnson & Johnson already provided updated financials and guidance following the completion of the separation of Kenvue (KVUE). As a result, there are fewer unresolved questions.

Analyst Expectations

According to FactSet, Wall Street analysts anticipate that Johnson & Johnson will report earnings of $2.52 per share for the third quarter, with sales totaling $21 billion. Excluding the business segments now within Kenvue, sales for the first two quarters of the year amounted to $42.4 billion. Within this total, the pharmaceutical division contributed $27.1 billion, while the medical device division accounted for $15.3 billion.

Litigation and Growth Prospects

Investors will also be keen to hear updates on the ongoing litigation involving Johnson & Johnson's talc products, as it continues to pose challenges for the company. Furthermore, analysts will be looking for insight into growth prospects for Johnson & Johnson's drug business and any commentary regarding the impact of new GLP-1 obesity drugs on the medical device division.

Earnings Call and Performance

Johnson & Johnson has scheduled an earnings call for 8:30 a.m. Eastern on Tuesday. The company's shares have experienced a decline of over 10% this year, while the S&P 500 has gained approximately 13%. In contrast, the NYSE Arca Pharmaceutical Index (DRG) has shown a 5.3% increase in value for this year.

The Separation of Kenvue

Kenvue, in which Johnson & Johnson owned nearly 90% at the time, went public in May. However, in August, Johnson & Johnson closed an exchange offer that distributed its Kenvue holdings to Johnson & Johnson shareholders in exchange for over 190 million shares of Johnson & Johnson common stock.