Earnings Preview: Johnson & Johnson Reports Q4 Results Tuesday

| About: Johnson & (JNJ)

Johnson & Johnson (NYSE:JNJ) is due to report earnings before the opening bell on January 24, 2012. Below we can see the results of Johnson & Johnson over the last few earnings periods.

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company was founded in 1886 and is based in New Brunswick, New Jersey. JNJ trades an average of 8.6 million shares per day.

52 Week High: $68.05
52 Week Low: $57.50
Book Value: $22.52
Float Short: 1.43%

On average, 19 analysts are expecting a drop of $-0.14 in earnings per share compared to last quarter's results of $1.24. The reporting quarter's estimated mean earnings are $1.10 per share. Analyst estimates range between $1.04 and $1.16 per share.

The current trailing twelve months P/E ratio is 13.3. The forward P/E ratio is 12.5. Like so many other stocks reporting this week, JNJ is trading at a relatively small multiple by historic standards. The stock has been locked in a trading range for months and given its size, I would buy on dips if I wanted to gain exposure. With such a strong sideways, trend I can see no reason to pay up. With the stock trading near the upper end of the price range, perhaps it's a good time to look at selling some covered calls to hedge in case the price range remains intact.

For the same fiscal period year-over-year, revenue has declined to $61.59 billion for 2010 vs. $61.90 billion for 2009. The bottom line has rising earnings year-over-year of $13.33 billion for 2010 vs. $12.27 billion for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $16.53 billion for 2010 vs. $15.59 billion for 2009.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for JNJ

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 16.02 B $ 16.00 B $ -12.70 M -0.08%
Jun-11 $ 16.23 B $ 16.60 B $ 362.90 M 2.24%
Mar-11 $ 15.83 B $ 16.17 B $ 341.50 M 2.16%
Dec-10 $ 16.01 B $ 15.64 B $ -370.70 M -2.31%
Sep-10 $ 15.18 B $ 14.98 B $ -201.00 M -1.32%

M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results JNJ Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for JNJ:

paid2trade.com short interest tool. The total short interest number of shares for JNJ

The number of days to cover short interest based on average daily trading volume for JNJ:

paid2trade.com number of days to cover short interest based on average daily trading volume for JNJ

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.