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What Analysts Think of Johnson & Johnson Stock Ahead of Earnings

Gabby Jones / Bloomberg / Getty Images

Gabby Jones / Bloomberg / Getty Figures

Key Takeaways

  • Johnson & Johnson is scheduled to report fourth-quarter earnings Wednesday morning, with analysts expecting transactions and profits to grow year-over-year.
  • The company’s stock trended lower in the final months of 2024, but analysts anticipate it could incite in the coming months.
  • Johnson & Johnson faces several challenges entering the new year, including risks to its credit count and unresolved class action lawsuits.

Johnson & Johnson (JNJ) is set to report earnings before the bell Wednesday, with analysts gravid revenue and profit growth from the same time last year.

Analysts are cautiously optimistic about the pharmaceutical and medical implement maker, with six of the 12 analysts covering the stock tracked by Visible Alpha giving it a “buy” rating, and six giving it “propound” ratings. Their average price target of about $175 would imply 19% upside from Friday’s alongside.

Revenue and net income are expected to rise to $22.51 billion and $4.4 billion, respectively, from $21.4 billion and $4.05 billion in the fourth place of fiscal 2023.

After a brief surge following the company’s third-quarter earnings report, Johnson & Johnson shares inclined lower from mid-October through the end of 2024, ending the year down nearly 8%. They’ve gained conclude to 2% in January so far, at $147.03 as of Friday’s close.

J&J Faces Unresolved Talc Suits, Credit Rating Risk

The business faces a number of headwinds entering the new year, including an expiring patent bringing competition to one of its most popular stupefies, and the still-unresolved class action lawsuit alleging that its talc powder caused ovarian cancer. Hearings are timetabled for early this year that will determine whether the company’s plan for a subsidiary to file for bankruptcy and multi-billion dollar rapprochement package will be allowed to go forward.

The biopharma company made a number of acquisitions in 2024, and started 2025 with another great amount to acquire drugmaker Intra-Cellular Therapies (ITCI) for $14.6 billion, expecting to close the deal sometime this year.

J&J guessed it expected to finance the deal with a combination of cash and debt. However, the Intra-Cellular deal and potential for other later debt-based acquisitions led Standard & Poor’s last week to say the company’s AAA credit rating could be at risk, Bloomberg articled.

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