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Damien Conover, Morningstar analyst, weighs in on what to expect ahead of Johnson & Johnson’s earnings.
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Its earnings report.
Do you -- -- tomorrow before the opening bell so should you be looking to buy it had of Jane Jay's numbers joining us now is steaming Conover -- the analyst covering Johnson Johnson from Morningstar -- -- -- you.
Yeah.
Numbers first and foremost it's interesting right Johnson Johnson is only expecting its earnings per share and revenue to be at tick higher if you will.
In the same quarter last year on the EPS 129 in revenue sixteen point seven billion dollars.
What do you think terms just the numbers and we can get the fundamentals.
Yes you're just on the numbers that and we are looking her little bit more upside than what consensus is and I think Johnson johnsons -- favorably.
Position hears you grow a little bit quicker than likely sit pretty minimal growth than that over the long term as well we do think that.
The company will exceed expectations.
And we are bullish on the on the name.
OK there are a lot of things going on with Johnson -- the huge conglomerate could of course.
Many units but they've also got -- CEO who says his top priority is fixing the problems seem bullish on his performance so far.
Yeah well I think it's a little too early to whether or not to be bullish -- not I'm Alex course he's performance I think he's going after the right things initially I mean you really have to correct.
The manufacturing issues that have been plaguing Johnson Jansen for several quarters.
I think he's trying to right the ship there I think that is the right thing to be focused on so far I don't think we have enough.
Data points here to say whether nice doing a good job or not I think he's again focused in the right direction.
In its consumer business has Johnson & Johnson move past the string of recalls and I think you're for intent.
Yet that's the that is -- I'm referring to is they've really haven't passed the recalls CEO we continue to see recalls announced.
Albeit at a slower rate and their trajectory.
You know bringing those products back on line is improving.
But we're really probably looking at 2013.
Before they get the -- manufacturing issues resolved and it's gonna.
These some time here and that's really plagued the growth.
The overall company.
OK Damien let me -- some of the news in the pharmaceutical unit 38% of revenue in first quarter came from pharmaceuticals you got anti clotting drug with by -- The hope is that it will expand its -- is so that could be good but then on the downside were looking for the settlement -- the marketing the waiting marketed this anti psychotic drug risks for dog much I'm pronouncing it correctly so.
Where where we stand on those issues.
Yeah those -- important issues I would say the more important of the two is so large so the anti clotting drug.
This is probably changes -- the most important new drugs coming out of their pipeline.
The -- -- in this drug were anticipating to be slow and that could cause some investors to be concerned but over the long term this is a major step forward in antiquated elation.
Now how all the other point you reference the onetime -- wrist for all I think investors are gonna primarily looked through this they're gonna see it as a hit.
And -- be problematic but really I think they're going to be looking at the underlying earnings without that charge -- -- overall I don't expect that to -- much on the stock.
Are ready to go for Johnson Johnson earnings out for the belts weren't Damien thanks for timing analysis.
Thanks -- government.
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