Q4 Preview: Johnson & Johnson (JNJ) Looks for Cure to the Recall Blues
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Price: $273.41 --0%
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 11 | New: 19
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 11 | New: 19
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Johnson & Johnson (NYSE: JNJ) shares are down 34 cents to $62.31 in late market movement on Monday heading into the company's fourth-quarter earnings scheduled for Tuesday before the opening bell.
The maker of consumer, pharmaceutical and medical products is expected to report fourth-quarter earnings of $1.03 per share on sales of $16.08 billion.
In the third-quarter, JNJ bested the Street with earnings of $1.23 per share, 8 cents better than the analyst estimate. The company also reported revenue of $14.98 billion last quarter, missing the Street's view of $15.18 billion.
Since the start of the fourth quarter, shares of JNJ are up $6.84 or 17.52 percent. Over the last year the stock is down $0.96 or 1.52 percent.
A valuation shows that JNJ is going for a forward P/E of 12.81x full year estimates.
Data from Bloomberg shows that 12 analysts have a Buy rating on the stock, 13 have a Hold and zero have a Sell. The average analyst price target on JNJ is $65.50 with a target range of $59 to $72.
Analyst comments:
Goldman Sachs maintains a Neutral rating on JNJ with a Street-low price target of $59 on the stock.
Goldman analyst says, "The companies will be providing 2011 guidance and outlook for the first time. 2011 is likely to be as tough a year for pharma as 2010, if not even more challenging. There are few meaningful drug launches, additional US HC reform measures coming into effect, a full year of EU austerity measures, and the beginning of the patent cliff."
Wells Fargo maintains a Market Weight rating on JNJ with valuation range of $64-$65 on the stock.
Well Fargo analyst says, "Acquiring SNN (Smith & Nephew) would boost JNJ’s share of the orthopedic device market to about 21% from about 14%. SNN would help JNJ become the market leader in knees with almost 30% share, up from #3 today and 18% share. SNN would also help make JNJ a stronger player in the trauma market. Although JNJ’s hip share would increase to about 37% (from 25%), we don’t believe that antitrust issues would block such a deal given the competitive nature of the market."
Noble Financial analyst says, "We are looking for the Consumer division to post sales of $3.7 billion which is down 12% year over year but still may be on the high side considering the Johnson & Johnson's OTC recall issues have not yet abated."
The maker of consumer, pharmaceutical and medical products is expected to report fourth-quarter earnings of $1.03 per share on sales of $16.08 billion.
In the third-quarter, JNJ bested the Street with earnings of $1.23 per share, 8 cents better than the analyst estimate. The company also reported revenue of $14.98 billion last quarter, missing the Street's view of $15.18 billion.
Since the start of the fourth quarter, shares of JNJ are up $6.84 or 17.52 percent. Over the last year the stock is down $0.96 or 1.52 percent.
A valuation shows that JNJ is going for a forward P/E of 12.81x full year estimates.
Data from Bloomberg shows that 12 analysts have a Buy rating on the stock, 13 have a Hold and zero have a Sell. The average analyst price target on JNJ is $65.50 with a target range of $59 to $72.
Analyst comments:
Goldman Sachs maintains a Neutral rating on JNJ with a Street-low price target of $59 on the stock.
Goldman analyst says, "The companies will be providing 2011 guidance and outlook for the first time. 2011 is likely to be as tough a year for pharma as 2010, if not even more challenging. There are few meaningful drug launches, additional US HC reform measures coming into effect, a full year of EU austerity measures, and the beginning of the patent cliff."
Wells Fargo maintains a Market Weight rating on JNJ with valuation range of $64-$65 on the stock.
Well Fargo analyst says, "Acquiring SNN (Smith & Nephew) would boost JNJ’s share of the orthopedic device market to about 21% from about 14%. SNN would help JNJ become the market leader in knees with almost 30% share, up from #3 today and 18% share. SNN would also help make JNJ a stronger player in the trauma market. Although JNJ’s hip share would increase to about 37% (from 25%), we don’t believe that antitrust issues would block such a deal given the competitive nature of the market."
Noble Financial analyst says, "We are looking for the Consumer division to post sales of $3.7 billion which is down 12% year over year but still may be on the high side considering the Johnson & Johnson's OTC recall issues have not yet abated."
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