Johnson & Johnson Earnings Preview

Johnson & Johnson’s track record indicates that they will deliver another solid quarter.

Johnson & Johnson (JNJ: 65.64 +0.08%) is scheduled to report their second quarter 2010 results before the market opens on Tuesday, July 20.

JNJ has a tremendous track record of delivering earnings results that exceed Wall Street’s consensus estimates. Last quarter, the pharmaceutical giant reported earnings results that were $.02 above Wall Street’s consensus estimates. JNJ shares were essentially unchanged following the earnings announcement.

The current Wall Street consensus estimates are for revenues of $15.68 billion and EPS of $1.21. This would imply a 3% increase in revenues over last year’s $15.24 billion. Analysts expect an even bigger increase in profits. 

Johnson & Johnson shares have fallen 6% this year, but have outperformed the 3% decline in the S&P 500 index. Last year, JNJ shares gained nearly 8%, but underperformed the 23% gain in the S&P 500.

Johnson & Johnson stock is currently trading at 12x consensus 2011 EPS estimates. Johnson & Johnson will likely deliver another solid quarter and provides investors with one of the safer stocks in the Dow Jones index.