Earnings and Growth Analysis : Johnson & Johnson (NYSE:JNJ)


Earnings results for Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson is expected* to report earnings on 10/13/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.99. The reported EPS for the same quarter last year was $2.12.

Johnson & Johnson last released its quarterly earnings results on July 16th, 2020. The reported $1.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.50 by $0.17. The business had revenue of $18.34 billion for the quarter, compared to analyst estimates of $17.73 billion. Its revenue was down 10.8% on a year-over-year basis. Johnson & Johnson has generated $8.68 earnings per share over the last year and currently has a price-to-earnings ratio of 22.2. Johnson & Johnson has confirmed that its next quarterly earnings report will be published on Tuesday, October 13th, 2020.

Analyst Opinion on Johnson & Johnson (NYSE:JNJ)

14 Wall Street analysts have issued ratings and price targets for Johnson & Johnson in the last 12 months. Their average twelve-month price target is $164.62, predicting that the stock has a possible upside of 8.41%. The high price target for JNJ is $182.00 and the low price target for JNJ is $155.00. There are currently 4 hold ratings and 10 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Johnson & Johnson has received a consensus rating of Buy. The company’s average rating score is 2.71, and is based on 10 buy ratings, 4 hold ratings, and no sell ratings. According to analysts’ consensus price target of $164.62, Johnson & Johnson has a forecasted upside of 8.4% from its current price of $151.84. Johnson & Johnson has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson pays a meaningful dividend of 2.68%, higher than the bottom 25% of all stocks that pay dividends. Johnson & Johnson has been increasing its dividend for 24 years. The dividend payout ratio of Johnson & Johnson is 46.54%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Johnson & Johnson will have a dividend payout ratio of 45.19% next year. This indicates that Johnson & Johnson will be able to sustain or increase its dividend.

Insiders buying/selling: Johnson & Johnson (NYSE:JNJ)

In the past three months, Johnson & Johnson insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $6,750,605.00 in company stock. Only 0.27% of the stock of Johnson & Johnson is held by insiders. 67.44% of the stock of Johnson & Johnson is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Johnson & Johnson (NYSE:JNJ

Earnings for Johnson & Johnson are expected to grow by 13.89% in the coming year, from $7.85 to $8.94 per share. The P/E ratio of Johnson & Johnson is 22.20, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.91. The P/E ratio of Johnson & Johnson is 22.20, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 29.05. Johnson & Johnson has a PEG Ratio of 3.26. PEG Ratios above 1 indicate that a company could be overvalued. Johnson & Johnson has a P/B Ratio of 6.72. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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