How did JNJ's Q4 earnings surprise impact investor sentiment?

**Johnson & Johnson's (JNJ) Q4 earnings surprise had a positive impact on investor sentiment**, as evidenced by several key indicators:

1. **Earnings Surprise**: Johnson & Johnson reported an EPS surprise of $0.02 for the quarter ended December 31, 2024, compared to the expected EPS. This positive surprise indicates that the company's performance exceeded market expectations, which typically leads to increased investor confidence.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|JNJ|JNJ.N|Johnson & Johnson|2024 Q1|4886.764705882353|3.255E9|169|
|JNJ|JNJ.N|Johnson & Johnson|2024 Q2|-8.90357698289269|4.686E9|169|
|JNJ|JNJ.N|Johnson & Johnson|2024 Q3|-89.6496081143384|2.694E9|169|
|JNJ|JNJ.N|Johnson & Johnson|2024 Q4|-15.263027908125462|3.431E9|169|

2. **Stock Performance**: Following the earnings release, Johnson & Johnson's stock price increased by 2.87% to $159.82. This uptick suggests that investors reacted positively to the news, likely due to the company's strong financial performance.
3. **Analyst Optimism**: Analysts had estimated a decline in earnings when JNJ reported results for the quarter ended September 2024, but the company's performance exceeded these expectations. This likely led to increased optimism among analysts and investors alike.
4. **Revenue Growth**: The company reported revenue of $22.47 billion for the quarter, marking a 5.3% increase year-over-year. This growth, coupled with the earnings surprise, contributed to a positive market sentiment.
5. **Broader Sector Impact**: The positive earnings results from Johnson & Johnson had a ripple effect on the broader healthcare sector, with ETFs in focus post-earnings beat and target price hikes. This suggests that the company's strong performance was seen as a positive indicator for the healthcare industry as a whole.

In conclusion, Johnson & Johnson's Q4 earnings surprise, coupled with strong revenue growth and positive stock performance, contributed to a positive shift in investor sentiment. The company's consistent performance and ability to exceed market expectations likely bolstered confidence among investors.