Johnson & Johnsons (JNJ) second-quarter earnings exceeded market expectations, supported by strong demand for the newer additions to the companys product range, such as the Darzalex cancer drug. J&J also revised up its full-year earnings forecast.
Johnson & Johnson shares closed higher for a third time in the past seven trading sessions on Tuesday. It has also been the steepest daily surge since May 15th. The stock went up 1.75% ($2.31) to $134.46, after touching an intraday high at $134.95, or a price level not seen since June 28th ($136.20). In the week ended on July 16th the shares of the health care product manufacturer added 0.05% to their market value compared to a week ago, which marked a second consecutive period of gains, but yet, it has been the smallest increase since the week ended on May 7th. The stock has neutralized earlier losses and is now up 1.64% so far during the current month, following a 3.15% surge in June. The latter has been a second consecutive month of gains. For the entire past year, the shares of the NYSE-listed company rose 12.16%.
J&Js total sales were reported at $18.84 billion during the second quarter. In comparison, the median analyst forecast had pointed to $18.95 billion in revenue, according to Thomson Reuters I/B/E/S.
Sales of Remicade, used for the treatment of numerous autoimmune disorders, were reported to have shrunk 14% to $1.53 billion during the latest quarter compared to the same period a year earlier.
However, J&Js earnings, excluding special items, were reported at $1.83 per share during the latest quarter, while topping the median analyst estimate ($1.80).
“We are optimistic that the investments we are making will accelerate our sales growth in the second half of this year”, Chief Executive Officer Alex Gorsky was quoted as saying by Reuters.
Meanwhile, the company revised up its full-year 2017 earnings forecast to a range of $7.12-$7.22 a share. The prior forecast had pointed to full-year earnings within the range of $7.00-$7.15 per share.
Additionally, the low end of J&Js full-year 2017 revenue forecast range was revised up to $75.8 billion from $75.4 billion previously, while the upper end of the forecast range was left without change at $76.1 billion.
According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Johnson & Johnson’s stock price, have a median target of $135.00, with a high estimate of $143.00 and a low estimate of $108.00. The median estimate is a 0.40% surge compared to the closing price of $134.46 on July 18th.
The same media also reported that 14 out of 24 surveyed investment analysts had rated Johnson & Johnson’s stock as “Hold”, while 8 – as “Buy”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Johnson & Johnson stock are presented as follows:
R1 – $134.81
R2 – $135.17
R3 (Range Resistance – Sell) – $135.52
R4 (Long Breakout) – $136.59
R5 (Breakout Target 1) – $137.83
R6 (Breakout Target 2) – $138.43
S1 – $134.11
S2 – $133.75
S3 (Range Support – Buy) – $133.40
S4 (Short Breakout) – $132.33
S5 (Breakout Target 1) – $131.09
S6 (Breakout Target 2) – $130.49
By using the traditional method of calculation, the weekly levels of importance for Johnson & Johnson (JNJ) are presented as follows:
Central Pivot Point – $132.03
R1 – $133.57
R2 – $134.55
R3 – $136.09
R4 – $137.64
S1 – $131.05
S2 – $129.51
S3 – $128.53
S4 – $127.56
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