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Johnson & Johnson's Earnings: A Preview

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Benzinga Insights
·2 min read
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Johnson & Johnson (NYSE:JNJ) releases its next round of earnings this Tuesday, January 26. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Johnson & Johnson modeled for quarterly EPS of $1.82 on revenue of $21.67 billion. Johnson & Johnson reported a profit of $1.88 per share when it published results during the same quarter last year. Sales in that period totaled $20.75 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

View more earnings on JNJ

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 3.19%. Sales would be have grown 4.45% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

EPS Estimate

1.98

1.48

1.99

1.87

EPS Actual

2.20

1.67

2.30

1.88

Revenue Estimate

20.20 B

17.50 B

19.44 B

20.78 B

Revenue Actual

21.08 B

18.34 B

20.69 B

20.75 B

Stock Performance

Shares of Johnson & Johnson were trading at $163.56 as of January 22. Over the last 52-week period, shares are up 9.64%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Johnson & Johnson is scheduled to hold the call at 08:30:00 ET and can be accessed here.

See more from Benzinga

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