What to Look for When Johnson & Johnson (JNJ) Posts Q2 Results

Johnson & Johnson (JNJ) is scheduled to report its 2016 second quarter results before Tuesday’s market open.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Johnson & Johnson (JNJ) - Get Report are declining 0.1% to $123.01 late Friday afternoon ahead of the company's 2016 second quarter results due out before Tuesday's opening bell.

Wall Street is expecting the New Brunswick, NJ-based manufacturer of medical devices, pharmaceutical and consumer packaged goods, to report earnings of $1.68 per share on revenue of $17.98 billion.

Last year, Johnson & Johnson said it had adjusted earnings of $1.71 per share on revenue of $17.8 billion.

Barclays believes expectations appear beatable for the company.

"While FX headwinds and slower OUS growth could result in management teams striking an incrementally more cautious tone on 2H16, we nevertheless don't anticipate any material downward guidance revisions," the firm wrote in an analyst note earlier today.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and expanding profit margins.

The team believes its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: JNJ

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