Johnson & Johnson is trading at $104.61. The share price is down 1.1% since the company revealed its second-quarter figures in July, when revenue increased 9.1% to $19.5 billion and EPS rose by 12.9% to $1.66, both exceeding analysts’ estimates.
The CEO Alex Gorsky stated the strong second quarter was attributable to the ‘success of new product launches’. Global pharmaceutical sales jumped 21% to $8.5 billion and this was partially due to the popularity of its new drug Olysio, which is used to treat hepatitis C. Revenues at the consumer division rose by 2.4% while the medical services unit eked out a 0.7% increase in sales. Mr Gorsky hinted at going on the acquisition trail to increase the company’s portfolio in the medical services field.
Equity analysts are very bullish on the stock. Out of the 29 recommendations, 15 are buys, 13 are holds and only one is a sell.
Over the past month the stock has been rangebound between $102-$106. The 200-day moving average of $99.25 is providing support while robust numbers could put the stock on a path to $110.
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