Johnson & Johnson JnJ provides strong income, tariff grief News ad

Johnson and Johnson NYSE: JNJ He delivered a solid income report on April 15.

On the one hand, the company won from above and the result and proposed better than expected, leadership. On the other hand, JNJ acknowledged the likelihood that a tariff of $ 400 million for a business company for medical devices, which in a short -term perspective will affect the business.

This was enough to put a delay in the immediate rally after receiving the benefit.

Promotions decreased by about 1% In the middle of the day, investors consider any blow to the company’s income as a reason for sale. Nevertheless, in accordance with equilibrium, the report offered more good than bad, that investors should take into account at a time when good enough, it may be good enough.

The problem with the tariff requires context

Johnson & Johnson was the first biopharmaceutical company and one of the first medical actions to inform the income from the moment of announcement of the tariffs of the Trump administration.

But with all the uncertainty related to future political movements, investors should think about the influence of $ 400 million as in the worst case.

Currently, the company sees the influence on its Medtech Business from the tariffs for steel and aluminum that exist. But where it becomes a little nuanced. The company expects additional tariffs when the Trump administration raises exemption from pharmaceuticals.

These tariffs may occur or not. They can also come at a lower level. This is dull, therefore it is good that J& j recognizes the work of a bear.

Investors will know more over the next two months. Until then, it’s good to look at the rest of the company’s report.

The portfolio of innovative medicine was a bright spot

Johnson & Johnson is one of the leading companies in the field of accurate (that is, personalized) medicine. The new area of ​​genetic therapy creates opportunities for JNJ to create and clarify new methods of treating diseases in areas such as oncology, cardiology, immune system and neurological system.

To this end, Johnson & Johnson conducted a breakthrough in this area, since the European commission approved the Rybrevant drug for the treatment of non -coclic lung cancer in 2024 after the green light of the US sanitary supervision supervision in September of the same year.

The long -term Rybrevant potential for several billion dollars occurs at a time when JNJ saw his patent expiring on his blockbuster of the Autoimmunn drug/anti -inflammatory medium, steelra.

Investments in MedTech begin to pay off

Jnj shares were in the range for most of 2024. The ongoing trials related to his products related to talc were one of the reasons. But another reason can be found in the balance sheet of the company. The company grew by acquiring Abiomed (approximately $ 17 billion) and Shockwave (approximately $ 13 billion).

J& J Medtech saw compared to the same period last year revenue growth of about 4.3%Some investors will say that this is not so many investments of $ 30 billion, but the company still predicts an annual increase of 5-7% for the Medtech Division, which should allow investors to see the return on these investments.

A lawsuit that will not end

In addition to the potential impact of tariffs, Johnson & Johnson did not have a new update about current trials related to talcas. The company’s attempt to promote trials into a separate company, which can then be declared bankrupt, was rejected by the courts for the third time. If successful, this would limit payments to applicants of $ 10 billion. This means that he returns to the courts for the company and greater uncertainty for shareholders.

Jnj Promotions is the purchase and retention on the best days

Johnson & Johnson is the king of dividends, who has just increased his dividends in the 63rd year in a row.

Company Raised his dividends by six cents (4.84%) up to $ 1.30 per share. This is an increase below the three -year -old company by 5.43%, but it is significantly higher than its historical level by 1.78%.

This is important because, although the problems of litigation and tariffs are not insignificant, it seems that these influences were largely evaluated in the JNJ stock. If so, then investors should look at the forecasts of analysts, which offer potential about 11% for shares.

And when you add dividends that give 3.22%, there is a viable reason to take a strategy for purchasing and withholding shares in the middle of its 52-week range.

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