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Johnson & Johnson (JNJ - Free Report) set the ball rolling for the pharma and medical device manufacturer space’s third-quarter 2022 earnings on Oct 18, before the opening bell. The world's biggest healthcare products’ maker continued with its long streak of earnings beat. It outpaced revenue estimates and raised its full-year revenue guidance.
Following the results, JNJ shares fell 0.3% on the day. This has put ETFs having the highest allocation to this diversified drug maker, such as iShares U.S. Pharmaceuticals ETF (IHE - Free Report) , VanEck Vectors Pharmaceutical ETF (PPH - Free Report) , Health Care Select Sector SPDR Fund (XLV - Free Report) , iShares U.S. Healthcare ETF (IYH - Free Report) and First Trust Nasdaq Pharmaceuticals ETF (FTXH - Free Report) in the spotlight.
Earnings per share came in at $2.55, beating the Zacks Consensus Estimate of $2.49 but deteriorating 1.9% from the year-ago quarter. Revenues grew 1.8% year over year to $23.8 billion and edged past the Zacks Consensus Estimate of $23.3 billion. The solid performance was driven by strong demand for Darzalex, Tremfya, Stelara, Erleada, and paliperidone palmitate and COVID-19 vaccine, which were offset by lower sales from Remicade and Imbruvica (see: all the Healthcare ETFs here).
For 2022, Johnson & Johnson lifted its sales growth target to 6.7-7.2% from the previous guidance of 6.5-7.5%. However, the earnings per share guidance range has been revised down slightly from $10.00-$10.10 to $10.02-$10.07, representing year-over-year growth of 2.3-2.8%. The Zacks Consensus Estimate is pegged at 0.9% for revenue growth and $10.00 for earnings per share.
iShares U.S. Pharmaceuticals ETF provides exposure to 42 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for a 23.3% share.
iShares U.S. Pharmaceuticals ETF has $388.2 million in AUM and charges 39 bps in fees and expenses. Volume is lower as it exchanges about 8,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Johnson and Johnson occupying the top position at 9.3% of assets (read: 4 Sector ETFs to Tap on Rising Inflation).
VanEck Vectors Pharmaceutical ETF has amassed $529.2 million in its asset base and trades in a good volume of about 163,000 shares a day. The expense ratio is 0.35%. VanEck Vectors Pharmaceutical ETF has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Health Care Select Sector SPDR Fund is the most-popular healthcare ETF and follows the Health Care Select Sector Index. It holds 64 securities in its basket, with JNJ taking the second spot at 9.2% of the assets. Pharma, and healthcare providers and services take the largest share at 30.4% and 23.9% share, respectively, from a sector look, while healthcare equipment and supplies, biotech and life sciences tools & services have double-digit exposure each.
Health Care Select Sector SPDR Fund manages nearly $37 billion in its asset base and trades in a heavy volume of around 9 million shares. The expense ratio comes in at 0.10%. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 4 Sector ETFs to Play Upbeat September Jobs Data).
iShares U.S. Healthcare ETF offers exposure to 112 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies by tracking the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index. Here again, Johnson and Johnson is the second firm accounting for 9.9% of the total assets. In terms of industrial exposure, pharma takes the top spot at 30.7%, followed by healthcare equipment (17.7%) and biotech (17.7%).
iShares U.S. Healthcare ETF has amassed $3 billion in its asset base, while charging 39 bps in annual fees. It trades in a moderate volume of around 76,000 shares a day and has a Zacks ETF Rank #1 with a Medium risk outlook.
First Trust Nasdaq Pharmaceuticals ETF tracks the Nasdaq US Smart Pharmaceuticals Index, holding 28 securities in its basket. Johnson and Johnson occupies the fourth position in the basket with 8.2% share. FTXH has a lower level of $40.6 million in AUM and an average daily volume of 20,000 shares.
First Trust Nasdaq Pharmaceuticals ETF charges 60 bps in annual fees and has a Zacks ETF Rank #3.
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JNJ Beats on Q3 Earnings: ETFs in Focus
Johnson & Johnson (JNJ - Free Report) set the ball rolling for the pharma and medical device manufacturer space’s third-quarter 2022 earnings on Oct 18, before the opening bell. The world's biggest healthcare products’ maker continued with its long streak of earnings beat. It outpaced revenue estimates and raised its full-year revenue guidance.
Following the results, JNJ shares fell 0.3% on the day. This has put ETFs having the highest allocation to this diversified drug maker, such as iShares U.S. Pharmaceuticals ETF (IHE - Free Report) , VanEck Vectors Pharmaceutical ETF (PPH - Free Report) , Health Care Select Sector SPDR Fund (XLV - Free Report) , iShares U.S. Healthcare ETF (IYH - Free Report) and First Trust Nasdaq Pharmaceuticals ETF (FTXH - Free Report) in the spotlight.
Earnings per share came in at $2.55, beating the Zacks Consensus Estimate of $2.49 but deteriorating 1.9% from the year-ago quarter. Revenues grew 1.8% year over year to $23.8 billion and edged past the Zacks Consensus Estimate of $23.3 billion. The solid performance was driven by strong demand for Darzalex, Tremfya, Stelara, Erleada, and paliperidone palmitate and COVID-19 vaccine, which were offset by lower sales from Remicade and Imbruvica (see: all the Healthcare ETFs here).
For 2022, Johnson & Johnson lifted its sales growth target to 6.7-7.2% from the previous guidance of 6.5-7.5%. However, the earnings per share guidance range has been revised down slightly from $10.00-$10.10 to $10.02-$10.07, representing year-over-year growth of 2.3-2.8%. The Zacks Consensus Estimate is pegged at 0.9% for revenue growth and $10.00 for earnings per share.
iShares U.S. Pharmaceuticals ETF (IHE - Free Report)
iShares U.S. Pharmaceuticals ETF provides exposure to 42 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for a 23.3% share.
iShares U.S. Pharmaceuticals ETF has $388.2 million in AUM and charges 39 bps in fees and expenses. Volume is lower as it exchanges about 8,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
VanEck Vectors Pharmaceutical ETF (PPH - Free Report)
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Johnson and Johnson occupying the top position at 9.3% of assets (read: 4 Sector ETFs to Tap on Rising Inflation).
VanEck Vectors Pharmaceutical ETF has amassed $529.2 million in its asset base and trades in a good volume of about 163,000 shares a day. The expense ratio is 0.35%. VanEck Vectors Pharmaceutical ETF has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Health Care Select Sector SPDR Fund (XLV - Free Report)
Health Care Select Sector SPDR Fund is the most-popular healthcare ETF and follows the Health Care Select Sector Index. It holds 64 securities in its basket, with JNJ taking the second spot at 9.2% of the assets. Pharma, and healthcare providers and services take the largest share at 30.4% and 23.9% share, respectively, from a sector look, while healthcare equipment and supplies, biotech and life sciences tools & services have double-digit exposure each.
Health Care Select Sector SPDR Fund manages nearly $37 billion in its asset base and trades in a heavy volume of around 9 million shares. The expense ratio comes in at 0.10%. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 4 Sector ETFs to Play Upbeat September Jobs Data).
iShares U.S. Healthcare ETF (IYH - Free Report)
iShares U.S. Healthcare ETF offers exposure to 112 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies by tracking the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index. Here again, Johnson and Johnson is the second firm accounting for 9.9% of the total assets. In terms of industrial exposure, pharma takes the top spot at 30.7%, followed by healthcare equipment (17.7%) and biotech (17.7%).
iShares U.S. Healthcare ETF has amassed $3 billion in its asset base, while charging 39 bps in annual fees. It trades in a moderate volume of around 76,000 shares a day and has a Zacks ETF Rank #1 with a Medium risk outlook.
First Trust Nasdaq Pharmaceuticals ETF (FTXH - Free Report)
First Trust Nasdaq Pharmaceuticals ETF tracks the Nasdaq US Smart Pharmaceuticals Index, holding 28 securities in its basket. Johnson and Johnson occupies the fourth position in the basket with 8.2% share. FTXH has a lower level of $40.6 million in AUM and an average daily volume of 20,000 shares.
First Trust Nasdaq Pharmaceuticals ETF charges 60 bps in annual fees and has a Zacks ETF Rank #3.