Johnson & Johnson (NYSE: JNJ) beat estimates by 4 cents last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Tuesday, October 18. Johnson & Johnson is a holding company involved in the research and development, manufacture and sale of a range of health care products.

What analysts say:

  • Buy, sell, or hold?: The majority of analysts back Johnson & Johnson as a buy. But with 52.4% of analysts rating it a buy, Johnson & Johnson is still below the mean analyst rating of its nearest 10 competitors, which average 53.5% buys. Analysts don't like Johnson & Johnson as much as competitor Pfizer overall. Fifteen out of 16 analysts rate Pfizer a buy compared to 11 of 21 for Johnson & Johnson. Analysts' rating of Johnson & Johnson has stayed constant from three months prior.
  • Revenue Forecasts: On average, analysts predict $16.02 billion in revenue this quarter. That would represent a rise of 6.9% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.21 per share. Estimates range from $1.16 to $1.30.

What our community says:
 CAPS All Stars are solidly backing the stock with 98.2% awarding it an "outperform" rating. The community at large concurs with the All Stars with 96.5% granting it a rating of "outperform." Fools are keen on Johnson & Johnson and haven't been shy with their opinions lately, logging 3,278 posts in the past 30 days. Johnson & Johnson has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
 Johnson & Johnson's income has fallen year over year by an average of 13.1% over the past five quarters. The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

68.8%

70.5%

67.8%

69.3%

Operating Margin

26.1%

28.4%

22%

26.8%

Net Margin

16.7%

21.5%

12.4%

22.8%

One final thing: If you want to keep tabs on Johnson & Johnson movements, and for more analysis on the company, make sure you add it to your Watchlist.

The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.