Johnson & Johnson Earnings Are on Deck

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Johnson & Johnson (NYS: JNJ) is expected to report Q2 earnings around July 15. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Johnson & Johnson's revenues will expand 7.6% and EPS will increase 6.9%.

The average estimate for revenue is $17.72 billion. On the bottom line, the average EPS estimate is $1.39.


Revenue details
Last quarter, Johnson & Johnson logged revenue of $17.51 billion. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.14 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.44. GAAP EPS of $1.22 for Q1 were 13% lower than the prior-year quarter's $1.41 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 68.3%, 120 basis points worse than the prior-year quarter. Operating margin was 28.2%, 10 basis points worse than the prior-year quarter. Net margin was 20.0%, 420 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $70.87 billion. The average EPS estimate is $5.42.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 13,483 members out of 13,988 rating the stock outperform, and 505 members rating it underperform. Among 3,290 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,221 give Johnson & Johnson a green thumbs-up, and 69 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Johnson & Johnson is outperform, with an average price target of $79.17.

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The article Johnson & Johnson Earnings Are on Deck originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Johnson & Johnson and recommends the following options:Long Jan 2014 $50 Calls on Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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