Johnson & Johnsons (JNJ) second-quarter revenue and earnings, reported on Tuesday, outstripped Wall Street estimates, as strong sales of the companys Zytiga and Darzalex cancer drugs more than offset a drop in sales of the popular Remicade drug.
Johnson & Johnson shares closed higher for the eighth time in the past eleven trading sessions in New York on Tuesday. It has also been the sharpest daily surge since January 26th 2016. The stock went up 3.54% ($4.42) to $129.11, after touching an intraday high at $130.54, or a price level not seen since April 17th ($132.20).
Shares of Johnson & Johnson have retreated 7.59% so far in 2018 compared with a 5.08% gain for the underlying index, S&P 500 (SPX).
In 2017, Johnson & Johnson’s stock rose 21.27%, thus, it outperformed the S&P 500, which registered a 19.42% return.
Johnson & Johnsons total sales were reported to have surged to $20.83 billion during the quarter ended on June 30th, from $18.84 billion in the same period a year earlier. In comparison, analysts on average had anticipated $20.39 billion in revenue.
Sales in Johnson & Johnsons key Pharmaceutical segment soared 20% year-on-year to $10.35 billion during the latest quarter.
Sales of the multiple myeloma drug, Darzalex, were reported at $511 million, thus, exceeding the median analyst forecast of $453 million.
Sales of prostate cancer drug, Zytiga, were reported at $909 million during the second quarter, again surpassing the consensus estimate of $794 million.
On the other hand, sales of Johnson & Johnsons rheumatoid arthritis drug, Remicade, shrank 14% year-on-year.
The healthcare conglomerates net income went up to $3.95 billion ($1.45 per share) during the quarter ended on June 30th, from $3.83 billion ($1.40 per share) in the year-ago quarter.
Excluding special items, Johnson & Johnson earned $2.10 per share during the second quarter, which compares with a median analyst estimate of $2.07 per share.
Meanwhile, the company now projects its full-year sales to be within the range of $80.5-$81.3 billion, a downward revision from a range of $81.0-$81.8 billion, as expected previously. J&J pointed US Dollar appreciation as the reason for the lower forecast.
The company also said it expects to earn between $8.07 and $8.17 per share for the full year. Previously, it forecast adjusted earnings of $8.00 to $8.20 per share.
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Johnson & Johnson’s stock price, have a median target of $143.00, with a high estimate of $161.00 and a low estimate of $110.00. The median estimate represents a 10.76% upside compared to the closing price of $129.11 on July 17th.
The same media also reported that 10 out of 23 surveyed investment analysts had rated Johnson & Johnson’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
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 – $129.38
R2 – $129.66
R3 (Range Resistance – Sell) – $129.93
R4 (Long Breakout) – $130.75
R5 (Breakout Target 1) – $131.71
R6 (Breakout Target 2) – $132.13
S1 – $128.84
S2 – $128.56
S3 (Range Support – Buy) – $128.29
S4 (Short Breakout) – $127.47
S5 (Breakout Target 1) – $126.51
S6 (Breakout Target 2) – $126.09
By using the traditional method of calculation, the weekly levels of importance for Johnson & Johnson (JNJ) are presented as follows:
Central Pivot Point – $126.49
R1 – $127.65
R2 – $129.38
R3 – $130.54
R4 – $131.71
S1 – $124.76
S2 – $123.60
S3 – $121.87
S4 – $120.15
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