Johnson & Johnson’s (JNJ) stock fell Tuesday despite beating Wall Street’s first-quarter earnings forecasts and raising its sales guidance for the year. The decline came as broader market sentiment suffered due to the impact of President Donald Trump’s tariffs on economic data.
Analysts attribute J&J’s sales guidance boost to the company’s takeover of Intra-Cellular Therapies, which added $1.8 billion at the midpoint, and its dividend increase. However, some analysts argue that the company’s sales growth may be hindered by weaker medtech sales and a decline in its atrial fibrillation business.
The company raised its sales guidance for the year to $91 billion to $91.8 billion, up from its prior outlook. J&J also maintained its earnings guidance of $10.50 to $10.70 per share. Despite this, some analysts remain cautious due to ongoing court cases related to J&J’s talc businesses.
In a positive note, Johnson & Johnson’s new products and pipeline, financial strength, and diverse operations are expected to drive growth despite short-term disruptions, according to Edward Jones analyst John Boylan. Shares of Legend Biotech (LEGN), which is partnered with J&J on Carvykti, jumped 7% at the open after the earnings report.
Source: https://www.investors.com/news/technology/johnson-johnson-stock-johnson-johnson-earnings-q1-2025