Johnson & Johnson Beats Earnings and Will Lift Dow, Biotech: StockTwits

NEW YORK (TheStreet) -- Johnson & Johnson  (JNJ) gave the markets a reason to continue Monday's rally. The healthcare giant announced results Tuesday morning that beat Wall Street consensus estimates for earnings per share and revenue.

Wow $jnj crushed it. Congrats longs

-- Aleks (@NYCStox) Apr. 15 at 07:48 AM

The results confirmed the growing bullishness on Johnson & Johnson on StockTwits.com.

Plus, many investors said that J&J's quarterly results, particularly the growth of its pharmaceutical business, could help lift the beaten-down biotech sector. iShares Nasdaq Biotechnology ETF (IBB) has lost 5.2% in the past five days.

$RNN Beat on earnings by $JNJ. Let's see some of the love extend to the Bios today. Best of mornings all! :-) Go $RNN.

-- Lynn (@Stocktok) Apr. 15 at 08:06 AM

Johnson & Johnson reported first quarter earnings per share of $1.54 on $18.1 billion in sales. That topped analysts' EPS estimates by 6 cents and sales predictions by $100 million, according to the Analyst Ratings Network. It was the top-trending ticker on StockTwits.com early Tuesday morning.

The company increased its full year EPS guidance to between $5.80 to $5.90, excluding special items. The new midpoint of the guidance topped consensus calls for $5.83.

Much of J&J's growth was fueled by medicines. Pharmaceutical sales grew 12.2%, discounting the impact of currency. Drugs to treat arthritis, schizophrenia and myeloma buoyed results. The consumer business actually weighed on growth.

Shares opened more than 2% higher to top $97 per share. Many investors called for more gains. Sentiment on Johnson & Johnson stood at around 86% bullish before the open, according to StockTwits' analytics.

$JNJ Today 100$ !

-- Emanuele Mercanti (@Merk80) Apr. 15 at 07:56 AM

The consensus price target is $76.92, according to the Analyst Ratings Network. The stock would have to fall 21% to get there.

Indeed, some investors focused on the weaknesses in J&J's earnings. Worldwide consumer sales fell 3.2% from the same period a year ago. The company attributed most of the decrease to exchange rates. But it admitted 0.6% of it came from operations. Domestic and international sales each decreased.

$SPY $JNJ We could see selling into JNJ strength as underneath their earnings there are many cracks

-- Stephen (@WiseOwlTrader) Apr. 15 at 08:17 AM

But there were few signs of J&J sinking to analysts' targets Tuesday. In fact, most signs pointed to an up day for J&J and the markets in general. Johnson & Johnson is a major Dow (DIA) component.

$JNJ & $KO are each ~10% of their respective indices today, should give them a nice boost.

-- The Irrelevant Investor (@MichaelBatnick) Apr. 15 at 08:39 AM

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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