Johnson & Johnson
) is scheduled to report second quarter 2014 results before the
opening bell on Jul 15.
Why a Likely Positive Surprise?
Our proven model shows that Johnson & Johnson is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Johnson & Johnson has an
of +1.30%. This is a meaningful and leading indicator of a likely
positive earnings surprise for the shares.
: Johnson & Johnson carries a Zacks Rank #2 (Buy) which when
combined with a +1.30% ESP makes us confident of an earnings beat.
Note that stocks with Zacks Rank #1, 2 and 3 have a significantly
higher chance of beating earnings. The Sell-rated stocks (#4 and 5)
should never be considered going into an earnings announcement.
What is Driving the Better-than-Expected Earnings?
Even though we expect Johnson & Johnson to continue facing
currency headwinds and other headwinds in the form of pricing
pressure, manufacturing issues and U.S. healthcare reform, we
believe that the strong performance of the pharmaceuticals segment
especially products like Remicade, Olysio, Xarelto, Invokana and
Zytiga will aid solid results for the company in the second
Last quarter, Johnson & Johnson had posted a positive earnings
surprise of 4.05%. Johnson & Johnson had posted an earnings
surprise in the trailing four-quarters with an average surprise of
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these also have the right combination of elements to post an
earnings beat this quarter:
Biogen Idec Inc.
) has an earnings ESP of +2.19% and carries a Zacks Rank #1. It is
scheduled to report its second-quarter results on Jul 23.
BioMarin Pharmaceutical Inc.
) has an earnings ESP of +2.38% and carries a Zacks Rank #2. It is
expected to report its second-quarter results on Jul 30.
The earnings ESP for
) is +2.60% and it carries a Zacks Rank #2. The company is
scheduled to release its second-quarter results on Jul 24.
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