2024-07-11 08:40:40 ET
Summary
- Johnson & Johnson will announce its Q2 2024 results on Wednesday, July 17 before the market opens.
- In this update, I share what to expect from JNJ's Q2 results and put previous results into perspective.
- In the main part of the article, I will take a close look at JNJ's earnings adjustments, amid the significant deviation from GAAP earnings (+46% median since 2014).
- I discuss what I believe may be inappropriate earnings adjustments related to JNJ's COVID-19 vaccine and restructuring costs.
- I also point out an important metric in connection with JNJ's somewhat weak pipeline at the moment.
Introduction
Pharmaceutical and medical devices giant Johnson & Johnson ( JNJ ) will release its second quarter results on Wednesday, July 17 at 8:30 a.m. Eastern Time. While in my last article I previewed the first quarter results and shared my view on the then-announced acquisition of Shockwave Medical, Inc., the topic of this earnings preview focuses on JNJ's earnings quality.
Johnson & Johnson is known for its clockwork-like track record, meeting analysts' estimates with a high degree of accuracy. As a critical investor, one is quick to hypothesize about - possibly inappropriate - earnings adjustments. Considering the fact that Johnson & Johnson's reported earnings deviate significantly from the GAAP figures (median of +46% over the last ten years, not a single negative deviation), there may be something to this hypothesis....
Read the full article on Seeking Alpha
For further details see:
Johnson & Johnson Q2 Earnings Preview: Scrutinizing Its Earnings Quality