Johnson & Johnson Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Johnson & Johnson (NYSE:JNJ) will unveil its latest earnings on Tuesday, January 24, 2012. 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 profit of $1.10 per share, a rise of 6.8% 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 $1.11. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.10 during the last month. Analysts are projecting profit to rise by 4.4% versus last year to $4.97.

Past Earnings Performance: Last quarter, the company reported net income of $1.24 per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 4% in revenue from the year-earlier quarter to $16.27 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.

A Look Back: In the third quarter, profit fell 6.3% to $3.2 billion ($1.15 a share) from $3.42 billion ($1.23 a share) the year earlier, but exceeded analyst expectations. Revenue rose 6.8% to $16 billion from $14.98 billion.

Key Stats:

Revenue has gone up for three straight quarters. It rose 8.3% in the second quarter from the year earlier and 3.5% in the first quarter.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 15.2% over the past four quarters. The quarter hit the hardest was the first quarter, that saw a 23.2% drop.

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 October 20, 2011 to January 18, 2012, the stock price had risen $3.32 (5.4%) from $61.96 to $65.28. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 5, 2011 when shares rose for seven-straight days, rising 3.9% (+$2.52) over that span. It saw one of its worst periods between July 22, 2011 and August 4, 2011 when shares fell for 10-straight days, falling 7.3% (-$4.79) over that span.

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

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