J&J sets aside $3.9B for talc verdict, settlements

  • Johnson & Johnson (NYSE:JNJ) discloses it set aside nearly $4B to cover the biggest verdict against the company over its Baby Powder and other settlements while it appeals the 2018 decision to the U.S. Supreme Court.
  • In a 10-K filing, the company says it will take a $3.9B litigation expense related to "primarily talc-related reserves and certain settlements," and it aces 25K lawsuits by former Baby Powder users who claim talc in the product caused their cancers.
  • J&J says it set aside some of the money for a $4.7B verdict three years ago for 20 women who blamed the company's powders for ovarian cancer; the verdict later was cut to $2.1B.
  • Separately, Johnson & Johnson says it will be able to provide 20M U.S. doses of its single-shot COVID-19 vaccine by the end of March, assuming it wins approval from regulators.
  • The company disclosed the figure in written testimony ahead of a Congressional hearing tomorrow looking at the U.S. vaccine supply.

    Fundamentals Johnson & Johnson

    Over the current book year the company from New Brunswick could achieve a revenue around 91.54 billion USD (consensus estimates). This is quite more than 2020's revenue of 82.58 billion USD.

    Historical revenues and results Johnson & Johnson plus estimates 2020

    koersgrafiekenJohnson&Johnson

    The analysts expect for 2021 a net profit of 25.29 billion USD. For this year the consensus of Johnson & Johnson 's result per share is a profit of 9.5 USD. Based on this the price/earnings-ratio is 17.13.

    Analysts expect a dividend of 4.26 USD per share. Johnson & Johnson 's dividend yield thus equals 2.62 percent. The average dividend yield of the health care companies is a moderate 0.49 percent.

    Most recent target prices around 162 USD

    KBC Securities, Credit Suisse and ABN AMRO recently provided recommendations for the stock.

    Johnson & Johnson 's market capitalization is based on the number of outstanding shares around 428.47 billion USD. The Johnson & Johnson stock was the past 12 months quite volatile. Since last February the stock is 20 percent higher. This year the stock price moved between 109 and 174 dollar.

    Historical stock prices Johnson & Johnson

    financial analysis johnson&johnson

    Click here for dividend Johnson & Johnson. On Thursday the stock closed at 162.76 USD.

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