NJ stock was up in Wednesday premarket trading.
Healthcare and pharmaceutical giant Johnson & Johnson (NYSE:JNJ) is the latest US company to announce a new financial program in the wake of a new tax targeting stock repurchases later in the year. JNJ stock rose on the announcement of a fresh $5 billion share buyback program and reiterated its full-year earnings targets on Wednesday.
The groups 2.63 billion in outstanding common shares will be the objective of the buyback plan, according to Johnson & Johnson, which will be supported by cash and has no time limit.
JNJ reported earnings
Additionally, the business reaffirmed its expectation for 2022 earnings per share of between $10.65 and $10.75, with adjusted operational sales growth of between 6.5% and 7.5%.
For the fiscal year, 2022, Johnson & Johnson (NYSE:JNJ) revised its prediction for adjusted earnings to between $10.00 and $10.10 per share, a decrease of 25 cents from the upper end of its previous forecast, with sales in the neighborhood of $93.3 to $94.3 billion. This is a decrease from its earlier prediction of $94.8 billion to $95.8 billion, even though that sum included vaccine sales.
The groups 2.63 billion in outstanding common shares will be the objective of the buyback plan, according to Johnson & Johnson, which will be supported by cash and have no time limit.
Johnson & Johnsons tenacity has been shown throughout the past few years. The Board of Directors and management team continue to have faith in our business and pipeline, and as a result, they think that purchasing company shares is a good financial decision, according to CEO Joaquin Duato.
JNJ stock outlook
Shares of Johnson & Johnson were marked 0.85% higher in pre-market trading, indicating a $162.70 opening bell price. Johnson & Johnson (NYSE:JNJ) announced better-than-anticipated second-quarter earnings in late July, but it cut its full-year sales and profit estimates due to the impact of a stronger U.S. currency.
Johnson & Johnson reported that sales of pharmaceuticals increased 6.7% to $13.332 billion while those of the Covid vaccination more than doubled to $544 million from the previous year. Last month, Johnson & Johnson also announced that starting in 2019, it would fully stop selling its renowned talc-based baby powder products.
Johnson & Johnson (NYSE:JNJ) discontinued selling Baby Powder in the United States and Canada in 2020 because of the approximately 38,000 lawsuits it is facing regarding its links to the cancer-causing asbestos present in the talc-based product. The company, which started selling baby powder using talc as the main ingredient in 1894, announced late on Thursday that it will switch to an all cornstarch-based baby powder portfolio as of 2023.
Johnson & Johnson reported late last year that defense expenses in cases involving claims that its Baby Powder and other talc-based products contained asbestos that causes cancer had reached about $1 billion. Previous judgments and settlements have been responsible for an additional $3.5 billion.
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Author: Jowi Kwasu
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