Will Johnson & Johnson (JNJ) Miss This Earnings Season? - Analyst Blog
April 14 2014 - 10:00AM
Zacks
Johnson &
Johnson (JNJ) is scheduled to report first quarter 2014
results before the opening bell on Apr 15. Last quarter, Johnson
& Johnson had posted an earnings surprise of +3.33%. Let’s see
how things are shaping up for this announcement.
Factors at Play
Johnson & Johnson has delivered positive earnings surprises in
the last four quarters with an average beat of 3.75%.
Although revenues will continue to be impacted by genericization,
the strong performance of the pharmaceuticals segment especially
products like Remicade, Zytiga, Prezista, Invokana, Stelara,
Intelence, Xarelto, Simponi, Velcade and Invega Sustenna should
partially offset the negative impact of genericization.
Meanwhile, pricing pressure, manufacturing issues and the U.S.
healthcare reform measures will affect the bottom line.
Earnings Whispers?
Our proven model does not conclusively show that Johnson &
Johnson is likely to beat earnings this quarter. That is because a
stock needs to have both a positive Earnings ESP (Expected Surprise
Prediction) and a Zacks Rank of #1, 2 or 3 for this to happen. That
is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Johnson &
Johnson is 0.00% since the Most Accurate Estimate stands at $1.48,
in line with the Zacks Consensus Estimate.
Zacks Rank #2 (Buy): Johnson & Johnson’s Zacks
Rank #2 has little effect on the predictive power of ESP because
the Zacks Rank #2 when combined with a 0.00% ESP makes surprise
prediction difficult.
Other Stocks to Consider
Here are some other companies you
may want to consider as our model shows that they have the right
combination of elements, that is, a positive Zacks Earnings ESP and
a Zacks Rank #1, 2 or 3.
Biogen Idec Inc.
(BIIB) has an Earnings ESP of +8.14% and holds a Zacks Rank #3
(Hold). Biogen will be reporting first quarter results on Apr
23.
AbbVie Inc. (ABBV)
has an Earnings ESP of +1.47% and holds a Zacks Rank #3. AbbVie
will report first quarter results on Apr 25.
Cubist Pharmaceuticals
Inc. (CBST) has an Earnings ESP of +5.56% and holds a
Zacks Rank #3. Cubist will be reporting first quarter results on
Apr 22.
ABBVIE INC (ABBV): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
CUBIST PHARM (CBST): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
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