The Long Investor

$JNJ

Added 2023-04-18 16:37:23 +0000 UTC

Earnings today and at the opening it was up but has since dropped heavy, $JNJ posted a loss in the 1st quarter due to multi-billion dollar charge to settle a talc lawsuit. This may present a nice opportunity if it can come down to our buyzone on this news....as it is likely just a once off settlement and they will be back to a healthy profit next quarter. Buy zone is included here.

Market Watch:

Loss weighs against better-than-expected numbers, higher guidance and a dividend boost of 5.3%

Johnson & Johnson's stock reversed early gains to trade down 2% Tuesday, after the company swung to a first-quarter loss as it booked a multibillion-dollar charge to settle lawsuits stemming from its talc-containing powders.

The loss came even as the consumer health and pharmaceutical company beat consensus estimates for the period, raised its full-year guidance and boosted its quarterly dividend by 5.3%.

The company (JNJ) posted a loss of $68 million, or 3 cents a share, for the quarter, after income of $5.149 billion, or $1.93 a share, in the year-earlier period. The loss was due to a $6.9 billion one-time litigation charge relating to lawsuits filed by people alleging the company's talc-containing powders caused cancers, asbestos poisoning and other illnesses. The company has offered to pay at least $8.9 billion to settle the suits, and remove an overhang on the stock.