Johnson & Johnson
) is scheduled to report its fourth quarter 2012 results on Jan
22, 2013 before the opening bell.
Last quarter, the company posted a 4.17% positive surprise.
Let's see how things are shaping up prior to the
Growth Factors this Past Quarter
Last quarter, Johnson & Johnson recorded growth on the
back of strong product sales, despite the negative impact of
currency fluctuation. Even though we expect the company to
continue facing headwinds in the form of EU and Japan pricing
pressure, manufacturing issues and US healthcare reform, we
believe Johnson & Johnson's diversified business model, lack
of cyclicality, and strong financial position will continue to
help the company pave its way through tough situations.
Our proven model does not conclusively show that Johnson &
Johnson is likely to beat earnings this quarter. This is because
a stock needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy) or at least Zacks Rank #2
(Buy) or Zacks Rank #3 (Hold) for this to happen. This is not the
case here as you will see below.
Positive Zacks ESP
: This is because the Most Accurate estimate stands at $1.14
while the Zacks Consensus Estimate is higher at $1.17. That is a
difference of -2.56%.
Zacks Rank #2 (Buy)
. Johnson & Johnson's Zacks Rank of 2, however, increases the
predictive power of ESP. That said we also need to have a
positive ESP to be confident of an earnings surprise call.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
), Earnings ESP of 1.35% and Zacks Rank #2 (Buy)
), Earnings ESP of 5.80% and Zacks Rank #3 (Hold)
Onyx Pharma Inc.
), Earnings ESP of 19.05% and Zacks Rank #3 (Hold)
ASTRAZENECA PLC (AZN): Free Stock Analysis
JOHNSON & JOHNS (JNJ): Free Stock Analysis
ONYX PHARMA INC (ONXX): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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