Why Johnson & Johnson (JNJ) Could Beat Earnings Estimates Again

Core Viewpoint - Johnson & Johnson (JNJ) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in recent quarters [1][6]. Earnings Performance - Johnson & Johnson has consistently exceeded earnings estimates, with an average surprise of 4.89% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $2.77 per share, surpassing the Zacks Consensus Estimate of $2.57 per share by 7.78% [3]. - In the previous quarter, the company reported earnings of $2.04 per share against an expectation of $2.00 per share, resulting in a surprise of 2.00% [3]. Earnings Estimates and Predictions - Recent estimates for Johnson & Johnson have been revised upward, indicating a positive Earnings ESP (Expected Surprise Prediction) which suggests a likelihood of an earnings beat [6]. - The current Earnings ESP for Johnson & Johnson is +0.59%, reflecting increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) indicates a strong possibility of another earnings beat in the upcoming report [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [8].