Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We expect Johnson & Johnson (JNJ - Analyst Report) to report in line second-quarter 2013 results before the opening bell on Jul 16, 2013.

Factors at Play for 2Q

We expect the Pharma business to continue performing well. Although some products are facing generic competition, new products like Zytiga, Stelara, Xarelto, Simponi and Invega Sustenna should continue to perform well.

Meanwhile, we expect the Medical Devices & Diagnostics segment to continue facing challenges in the form of European austerity measures, pricing pressure and a slowdown in elective surgeries, which have all contributed to more tempered growth rates The Consumer segment should grow in low single digit rates.

The company has been trying to offset the declining sales of some of its important products by bringing in new products through in-licensing deals and acquisitions. We believe the diversity and strength of the company’s underlying businesses will continue to provide strong growth.

Johnson & Johnson has delivered positive earnings surprises in the last four quarters with an average beat of 2.20%.

Earnings Whispers?

Our proven model does not conclusively show that Johnson & Johnson is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive earnings Expected Surprise Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen.

Zacks ESP: The ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at $1.40.

Zacks Rank #3 (Hold): Johnson & Johnson’s Zacks Rank #3 lowers the predictive power of ESP because the Zacks Rank #3 when combined with an ESP of 0.00% indicates the possibility of in line results.

Stocks to Consider

Here are some other stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:

Eli Lilly and Company (LLY - Analyst Report) has Earnings ESP of +1.98% and holds a Zacks Rank #3 (Hold). Eli Lilly will be reporting second quarter earnings on Jul 24 before the market opens.

Biogen Idec. (BIIB - Analyst Report) has Earnings ESP of +3.89% and holds a Zacks Rank #3 (Hold). Biogen will be reporting second quarter earnings on Jul 25 before the market opens.

Abbott Laboratories (ABT - Analyst Report) has Earnings ESP of +2.27% and holds a Zacks Rank #3 (Hold). Abbott will be reporting second quarter earnings on Jul 17 before the market opens.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 29.54 +15.62%
FEDERATED NA FNHC 20.70 +4.18%
ALLIANCE FIB AFOP 17.95 +3.64%
GENTHERM INC THRM 36.91 +2.95%
GREEN PLAINS GPRE 29.78 +2.87%