Johnson & Johnson (JNJ) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Johnson & Johnson despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $2.64 per share, reflecting a -6.4% change year-over-year, while revenues are projected at $22.79 billion, an increase of 1.5% from the previous year [3]. - The consensus EPS estimate has been revised 0.49% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +0.59% for Johnson & Johnson, suggesting a likelihood of beating the consensus EPS estimate [12]. - The stock currently holds a Zacks Rank of 2, further supporting the expectation of an earnings beat [12]. Historical Performance - Johnson & Johnson has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +7.78% surprise in the most recent quarter [13][14]. Conclusion - While the potential for an earnings beat exists, other factors may influence stock movement, making it essential to consider the broader context beyond just earnings results [15][17].