Johnson & Johnson Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Johnson & Johnson (NYSE:JNJ) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. 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 $1.17 per share, a rise of 3.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.18. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 1.8% compared to last year’s $5.09.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at profit of $1.25 a share versus the estimate of net income of $1.20 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $17.67 billion in revenue this quarter, a rise of 8.7% from the year-ago quarter. Analysts are forecasting total revenue of $67.32 billion for the year, a rise of 3.5% from last year’s revenue of $65.03 billion.

A Look Back: In the third quarter, profit fell 7.3% to $2.97 billion ($1.05 a share) from $3.2 billion ($1.15 a share) the year earlier, but exceeded analyst expectations. Revenue rose 6.5% to $17.05 billion from $16 billion.

Here’s how Johnson & Johnson traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

JNJ

Stock Price Performance: Between November 15, 2012 and January 15, 2013, the stock price had risen $3.30 (4.8%), from $69.07 to $72.37. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 3, 2012, when shares rose for nine straight days, increasing 3.1% (+$1.97) over that span. It saw one of its worst periods between April 2, 2012 and April 11, 2012 when shares fell for seven straight days, dropping 3.1% (-$2.08) over that span.

Key Stats:

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 49.3% in the second quarter and then again in the third quarter.

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 0.2% in the first quarter and 0.7% in the second quarter before climbing in the third quarter.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)