What factors could impact JNJ's Q1 2025 EPS forecast?

Johnson & Johnson's (JNJ) Q1 2025 EPS forecast is likely to be influenced by several key factors: 1. **Patent Expirations and Competitive Landscape**: The impact of patent expirations for key products like Stelara is a significant concern. Loss of exclusivity for Stelara is expected to hurt revenue growth by 290 basis points in the quarter. This competitive dynamic could affect the company's profitability and EPS. 2. **Litigation and Regulatory Challenges**: Ongoing litigation related to talc products has weighed heavily on adjusted earnings. The company's ability to manage legal liabilities and regulatory hurdles will be crucial in determining its EPS. 3. **Market Dynamics and Currency Impact**: The company has noted challenges due to market fluctuations and currency impacts on its international sales. Fluctuations in currency exchange rates can significantly influence revenue and EPS, especially for a global player like JNJ. 4. **Innovation and New Product Launches**: The success of new products and continued innovation within its segments can positively influence EPS. JNJ has been expanding its product pipeline and positioning itself well amid market fluctuations, which could positively impact EPS if these efforts yield significant revenue. 5. **Strategic Acquisitions and Divestitures**: The impact of recent acquisitions and divestitures can affect EPS. For example, the anticipated impact from the planned acquisition of Intra-Cellular Therapies Inc. is expected to add $0.30 to $0.35 to 2025 adjusted earnings. The integration of these acquisitions and any divestitures could influence financial results and EPS. 6. **Comparative Performance with Prior Years**: The company's performance in Q1 2025 will be compared to the previous year's EPS. Adjusted EPS declined 10.5% from the prior year, so improving this trend will be important for maintaining or increasing EPS. In summary, JNJ's Q1 2025 EPS forecast is likely to be influenced by patent expirations, litigation, market dynamics, innovation, strategic moves, and comparative performance with prior years. Managing these factors will be critical for the company's financial performance and EPS.