Johnson & Johnson (NYSE: JNJ) is due to publish its Q2 2022 earnings reports on Tuesday, July 19, before the market opens. The outlook is positive for this report.
It can be a value stock, but can it be a good investment option for now?
Trefis estimates around $24.0 billion in revenue for the second quarter, equal to a 3% annual increase. Earnings per share (EPS) are also estimated to be $2.59. EPS for the whole year of 2022 is expected to be higher at $10.30 compared to $9.80 in 2021. Zacks investment research Consensus Estimate for JNJ Q2 EPS is also $2.59.
According to the Seeking Alpha website, EPS Normalized Estimate is $2.55, and Revenue Estimate is $23.82B.
In all past four quarters company could beat the expectations with the surprise of 5.41%, on average. J&J sales in Q1 increased by 5%, and it is expected to see another sales growth in the second quarter as well.
What should be important for us in this report?
The company's essential products, such as Darzalex, Stelara, Invega Sustenna, and new drugs, Erleada and Tremfya, are expected to increase sales. The Zacks Consensus Estimate for Darzalex and Stelara is $1.83 billion and $2.63 billion, respectively; for Invega Sustenna and Tremfya is $1.06 billion and $665 million, respectively.
JNJ's single-dose COVID-19 vaccine is not expected to play an important role. However, the MedTech segment most probably can compensate for the weakness of other sectors, including the sale of vaccines and Consumer Healthcare.
Of course, apart from sales and other mentioned factors, we have to watch the overall market condition and its rivals to find out if it is a value stock to invest in now or not. In the market, we have many factors to understand where to invest, especially in the current situation that the Covid-19 crisis has created many attractive investment opportunities.
While from the fundamental point of view, I can rank it as a Hold share, technically, it is in a clear downtrend, and if the price falls below $167, then deeper numbers are so likely to come in the radars.