The Fed announced its fourth consecutive 75-bps rate hike, taking the target range to 3.75%-4%, the highest level since January 2008. The series of consecutive rate hikes this year has led to a…
massive selloff in the market.
The Bureau of Labor Statistics reported 261,000 workers were added to non-farm payrolls in October, with the unemployment rate rising to 3.7%, suggesting that the tightness in the labor market has eased.
With the job market showing signs of cooling, a policy change might come. Economists hope to see the pace of rate hikes slowing down.
Johnson & Johnson (JNJ)
JNJ researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company operates through the broad segments of Consumer Health; Pharmaceuticals; and MedTech.
On November 1, JNJ announced that it had entered into a definitive agreement with Abiomed, Inc. (ABMD) to acquire all outstanding ABMD shares through a tender offer for an enterprise value of approximately $16.60 billion. The agreement is expected to broaden JNJ’s MedTech segment’s position as a cardiovascular innovator.
On September 20, JNJ opened its San Francisco Bay Campus, a cutting-edge Research and Development (R&D) center in the Bay Area. The facility connects essential scientific and technical resources and is expected to expand the company’s presence in the area.
On July 18, JNJ declared a quarterly dividend of $1.13 per common share, which was payable to shareholders on September 6. Its annual dividend of $4.52 yields 2.65% on the current share prices.
The company’s dividend payouts have increased at a 5.8% CAGR over the past three years and a 6% CAGR over the past five years. The company has a record of 59 years of consecutive dividend growth.
JNJ’s gross profit increased 1.8% year-over-year to $47.91 billion in the fiscal third quarter that ended September 30, 2022. Its sales to customers grew 3.3% from the year-ago value to $71.24 billion, while its net earnings improved 21.6% year-over-year to $4.46 billion. The company’s net earnings per common share rose 22.6% from its year-ago value to $1.68.
The consensus EPS estimate of $10.04 for the fiscal year ending December 2022 indicates a 2.5% improvement year-over-year. Its revenue is expected to increase 1.4% year-over-year to $95.04 billion for the same year. Additionally…
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