Johnson & Johnson MedTech Sales Misses Expectations Amid Securities Investigation
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Johnson & Johnson's MedTech segment reported sales growth of approximately 2.5% to roughly $8.6 billion, missing Wall Street consensus expectations. The company is currently facing an investigation into potential federal securities law violations, as notified to investors. The sales slowdown was attributed to flat international sales, declining Surgery revenue, European budget cuts, and pricing pressures in China.
From pr-inside.com
Why it matters
The sales miss and the regulatory investigation are negative catalysts that could force research firms and investment banks to revise Johnson & Johnson's valuation. The performance issues in the MedTech segment reflect ongoing investor concern over the company's orthopedic hips-and-knees business spin-off.
From pr-inside.com
Who's involved
- Johnson & JohnsonU.S multinational medical devices, pharmaceutical and consumer packaged goods manufacturer
- Securities and Exchange CommissionGovernment agency of the Philippines
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- HSBCSpeculative
Could be forced to revise Johnson & Johnson's valuation due to the sales miss and regulatory risk.
- Morgan StanleySpeculative
Could be forced to revise Johnson & Johnson's valuation due to the sales miss and regulatory risk.
- Bank of AmericaSpeculative
Could be forced to revise Johnson & Johnson's valuation due to the sales miss and regulatory risk.
- VanguardSpeculative
Could prompt a portfolio review and potential divestment due to regulatory risk and sales miss.
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The entities involved
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Johnson & Johnson
U.S multinational medical devices, pharmaceutical and consumer packaged goods manufacturer
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Medtech
medical education facility founded in 2004 in Indianapolis, U.S
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SEC
Slovak company