Johnson & Johnson (JNJ) is set to report its fourth-quarter earnings before the market opens today. Analysts are watching closely for sales and profit results that will show how the company finished the year. However, the story that is grabbing headlines today stems from a federal court legal fight over Johnson & Johnson’s talc products.
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Meanwhile, JNJ shares dropped 0.21% on Tuesday, closing at $218.21.
Talc Lawsuits Move Closer to Trial
A judge’s helper, known as a special master, found that plaintiffs should be allowed to use expert testimony linking the company’s talc products to ovarian cancer. This matter is part of a large set of lawsuits in New Jersey where more than 67,000 people claim the product caused cancer. The judge will review the special master’s recommendations before the first trial starts later this year.
The special master said that the plaintiffs’ experts used reliable methods and that the evidence, taken as a whole, shows a meaningful link between talc and cancer. However, the helper also said that some theories, like heavy metals or inhaled talc moving to the ovaries, should not be allowed. Johnson & Johnson says the ruling was wrong and plans to appeal. Company leaders also say the products are safe and do not cause cancer.
For investors, both the legal situation and the earnings report matter. The earnings release will give the first look at how the business is performing now that the company has exited talc-based baby powder sales in the U.S. Litigation news could shape future costs or settlements for the company if juries hear expert testimony linking talc products to cancer. The legal process is still ongoing, and outcomes remain uncertain.
Is Johnson & Johnson Stock a Buy Ahead of Earnings?
On the Street, Johnson & Johnson holds a Moderate Buy consensus view, based on 12 analysts’ ratings. The average JNJ stock price target is $222.40, implying a 1.92% upside from the current price.
