Johnson & Johnson Earnings Preview: What to Expect From Q2 Earnings

💡 J&J's Q2 earnings are expected to be impacted by a strong US dollar and rising input costs.

The healthcare giant is set to report its Q2 earnings on July 18th. The company's stock has been under pressure in recent months due to concerns over its pharmaceutical business and a strong US dollar. $JNJ's revenue growth is expected to be modest, with analysts predicting a 2% increase from the same period last year.

Pharmaceutical Segment

The pharmaceutical segment accounts for the majority of J&J's revenue and is expected to drive growth in Q2. The company's cancer treatment drugs, including Imbruvica and Darzalex, are expected to perform well, despite concerns over patent expirations. However, the segment's growth will be offset by the impact of a strong US dollar, which will reduce the value of J&J's foreign currency-denominated revenue.

Medical Devices Segment

The medical devices segment, which includes J&J's orthopedic and surgical businesses, is expected to experience a decline in revenue due to intense competition and pricing pressure. However, the company's recent acquisition of Abbott's vascular surgery business is expected to provide a boost to the segment.

Consumer Segment

The consumer segment, which includes J&J's baby care and beauty businesses, is expected to experience modest revenue growth in Q2. The segment's performance will be driven by the company's recent launches of new products, including its popular Neutrogena and Aveeno brands.

What It Means for Investors