Johnson & Johnson (NYSE:JNJ) (J&J) is set to release its third-quarter earnings, with differing forecasts from FactSet and Estimize. According to FactSet, the company is expected to post an earnings per share (EPS) of $2.52 and revenue of $21.036 billion, both figures lower than the previous year's records. Meanwhile, Estimize predicts a slightly higher EPS of $2.58 and revenue of $21.583 billion.
The upcoming earnings report comes amid a challenging year for J&J, as its stock value has seen an 11% decline despite gains in the Dow Jones and S&P 500 indices. The company's shares have received mixed reviews from analysts, with ten buy recommendations, seven hold, and one sell.
In recent developments, J&J completed the spinoff of Kenvue (NYSE:KVUE), which now manages its consumer health business. This move is anticipated to increase financial stability for the company. Analysts from JPMorgan have expressed confidence in J&J's robust fundamentals and predict significant growth in its MedTech portfolio as it recovers from pandemic-related hurdles.
However, J&J continues to grapple with ongoing legal issues related to talcum powder lawsuits, adding an element of uncertainty to the company's outlook. These ongoing legal challenges are likely to be a key factor in influencing the market's response to J&J's forthcoming Q3 earnings report.
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