Johnson and Johnson Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Johnson & Johnson (NYSE:JNJ) will unveil its latest earnings on Tuesday, July 19, 2011. Johnson & Johnson is a holding company involved in the research and development, manufacture and sale of a range of health care products.

Johnson & Johnson Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.24 per share, a rise of 2.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting profit of $4.95 per share, a rise of 4% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of $1.35 per share versus a mean estimate of $1.25. Two quarters ago, it reported profit of $1.03 per share.

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Wall St. Revenue Expectations: On average, analysts predict $16.22 billion in revenue this quarter, a rise of 5.8% from the year ago quarter. Analysts are forecasting total revenue of $65.07 billion for the year, a rise of 5.7% from last year’s revenue of $61.59 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 23.2% from the year earlier quarter, while the figure dropped 12% in the fourth quarter of the last fiscal year.

A year-over-year revenue increase in the first quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 3.5% in the first quarter and fell 5.5% in the fourth quarter of the last fiscal year and 0.7% in the third quarter of the last fiscal year.

Competitors to Watch: Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), Abbott Laboratories (NYSE:ABT), Eli Lilly & Co. (NYSE:LLY), GlaxoSmithKline plc (NYSE:GSK), Novartis AG (NYSE:NVS), Medtronic, Inc. (NYSE:MDT), Boston Scientific Corp. (NYSE:BSX), and Amgen, Inc. (NASDAQ:AMGN).

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had risen $7.59 (12.6%) from $60.04 to $67.63. The stock price saw one of its best stretches over the last year between November 4, 2010, and November 12, 2010, when shares rose for seven-straight days, rising 1.7% (+$1.06) over that span. Shares have been on a negative streak of late, closing down every day between July 12, 2011 and July 13, 2011. Shares are up $6.86 (+11.3%) year to date.

(Source: Xignite Financials)

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