Johnson & Johnson Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Johnson & Johnson (NYSE:JNJ) will unveil its latest earnings on Tuesday, October 18, 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 $1.21 per share, a decline of 1.6% 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 $1.23. Between one and three months ago, the average estimate moved down. It also has dropped from $1.22 during the last month. For the year, analysts are projecting profit of $4.96 per share, a rise of 4.2% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 4 cents, reporting net income of $1.28 per share against a mean estimate of profit of $1.24. In the first quarter, the company exceeded forecasts by 10 cents with net income of $1.35 versus a mean estimate of profit of $1.25.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7% in revenue from the year-earlier quarter to $16.03 billion.

Analyst Ratings: 11 out of 21 analysts surveyed (52.4%) have a buy rating on Johnson & Johnson.. This is below the mean analyst rating of 10 competitors, which average 53.5% buy ratings.

A Look Back: In the second quarter, profit fell 19.5% to $2.78 billion ($1 a share) from $3.45 billion ($1.23 a share) the year earlier, but exceeded analyst expectations. Revenue rose 8.3% to $16.6 billion from $15.33 billion.

Key Stats:

The company has seen net income fall in each of the last three quarters. Net income fell 23.2% in the first quarter and 12% in the fourth quarter of the last fiscal year.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 3.5%.

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 July 19, 2011 to October 12, 2011, the stock price had fallen $1.80 (-2.7%) from $66.13 to $64.33. 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% (+$2.53) 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% (-$4.84) over that span. Shares are up $4.10 (+6.8%) year to date.

(Source: Xignite Financials)

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