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Johnson & Johnson (JNJ - Free Report) set the ball rolling for the pharma and medical device manufacturer space’s fourth-quarter 2022 earnings on Jan 24, before the opening bell. The world's biggest healthcare products’ maker continued with its long streak of earnings beat. It missed revenue estimates.
The results have 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 Vanguard Health Care ETF (VHT - Free Report) in the spotlight.
Earnings per share came in at $2.35, beating the Zacks Consensus Estimate of $2.22 and improving 10% from the year-ago quarter. Revenues declined 4.4% year over year to $23.7 billion and fell short of the Zacks Consensus Estimate of $23.72 billion. Strong sales for Darzalex, Tremfya, Stelara, Erleada, and Invega Sustenna were offset by reduced sales of COVID-19 vaccine, Remicade, Zytiga and Imbruvica (see: all the Healthcare ETFs here).
For 2023, Johnson & Johnson expects revenues in the range of $96.9 billion to $97.9 billion and earnings per share of $10.45 to $10.65. The Zacks Consensus Estimate is pegged at $98.18 for revenues and $10.22 for earnings per share. The company is splitting off its consumer product business as it looks to intensify growth by focusing on its pharmaceutical and medical technology businesses.
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 21.3% share.
iShares U.S. Pharmaceuticals ETF has $418.4 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 8.2% of assets (read: 5 Sector ETFs That Beat the Market in December).
VanEck Vectors Pharmaceutical ETF has amassed $593.2 million in its asset base and trades in a good volume of about 83,000 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 8.8% of the assets. Pharma, and healthcare providers and services take the largest share at 30% and 22.4% 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 $41.3 billion in its asset base and trades in a heavy volume of around 7 million shares. The expense ratio comes in at 0.10%. It has a Zacks ETF Rank #2 with a Medium risk outlook.
iShares U.S. Healthcare ETF offers exposure to 113 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 8.5% of the total assets. In terms of industrial exposure, pharma takes the top spot at 29.9%, followed by healthcare equipment (18.9%) and biotech (18%).
iShares U.S. Healthcare ETF has amassed $3.3 billion in its asset base, while charging 39 bps in annual fees. It trades in a moderate volume of around 45,000 shares a day and has a Zacks ETF Rank #2 with a Medium risk outlook (read: UnitedHealth Beats Q4 Earnings: ETFs in Focus).
Vanguard Health Care ETF tracks the MSCI US Investable Market Health Care 25/50 Index and holds 420 stocks in its basket. Of these, UnitedHealth takes the top spot with an 8.5% allocation. Pharma takes the largest share at 28.2%, while biotech and healthcare equipment round off the top three spots.
Vanguard Health Care ETF is also one of the most popular and liquid ETFs, with AUM of $17 billion and an average daily volume of about 237,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
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ETFs in Focus on JNJ's Mixed Q4 Earnings Results
Johnson & Johnson (JNJ - Free Report) set the ball rolling for the pharma and medical device manufacturer space’s fourth-quarter 2022 earnings on Jan 24, before the opening bell. The world's biggest healthcare products’ maker continued with its long streak of earnings beat. It missed revenue estimates.
The results have 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 Vanguard Health Care ETF (VHT - Free Report) in the spotlight.
Earnings per share came in at $2.35, beating the Zacks Consensus Estimate of $2.22 and improving 10% from the year-ago quarter. Revenues declined 4.4% year over year to $23.7 billion and fell short of the Zacks Consensus Estimate of $23.72 billion. Strong sales for Darzalex, Tremfya, Stelara, Erleada, and Invega Sustenna were offset by reduced sales of COVID-19 vaccine, Remicade, Zytiga and Imbruvica (see: all the Healthcare ETFs here).
For 2023, Johnson & Johnson expects revenues in the range of $96.9 billion to $97.9 billion and earnings per share of $10.45 to $10.65. The Zacks Consensus Estimate is pegged at $98.18 for revenues and $10.22 for earnings per share. The company is splitting off its consumer product business as it looks to intensify growth by focusing on its pharmaceutical and medical technology businesses.
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 21.3% share.
iShares U.S. Pharmaceuticals ETF has $418.4 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 8.2% of assets (read: 5 Sector ETFs That Beat the Market in December).
VanEck Vectors Pharmaceutical ETF has amassed $593.2 million in its asset base and trades in a good volume of about 83,000 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 8.8% of the assets. Pharma, and healthcare providers and services take the largest share at 30% and 22.4% 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 $41.3 billion in its asset base and trades in a heavy volume of around 7 million shares. The expense ratio comes in at 0.10%. It has a Zacks ETF Rank #2 with a Medium risk outlook.
iShares U.S. Healthcare ETF (IYH - Free Report)
iShares U.S. Healthcare ETF offers exposure to 113 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 8.5% of the total assets. In terms of industrial exposure, pharma takes the top spot at 29.9%, followed by healthcare equipment (18.9%) and biotech (18%).
iShares U.S. Healthcare ETF has amassed $3.3 billion in its asset base, while charging 39 bps in annual fees. It trades in a moderate volume of around 45,000 shares a day and has a Zacks ETF Rank #2 with a Medium risk outlook (read: UnitedHealth Beats Q4 Earnings: ETFs in Focus).
Vanguard Health Care ETF (VHT - Free Report)
Vanguard Health Care ETF tracks the MSCI US Investable Market Health Care 25/50 Index and holds 420 stocks in its basket. Of these, UnitedHealth takes the top spot with an 8.5% allocation. Pharma takes the largest share at 28.2%, while biotech and healthcare equipment round off the top three spots.
Vanguard Health Care ETF is also one of the most popular and liquid ETFs, with AUM of $17 billion and an average daily volume of about 237,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.