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Since our start in 1998, we have collected earnings expectations ("whisper numbers") from traders and investors that register with our site. Whether you call it 'wisdom of crowds', 'social media analytics', or 'crowd sourcing', this methodology has proven itself ... more

J&J's Whisper Number Showing Confidence

Date: Monday, April 16, 2018 6:18 PM EDT

Johnson & Johnson (JNJ) is expected to report earnings Tuesday before market open. The whisper number is $2.06, five cents ahead of the analysts' estimates and showing some confidence from the WhisperNumber community. Whispers range from a low of $2.01 to a high of $2.10.

A year ago the company reported earnings of $1.83, four cents ahead of the whisper number. JNJ has a 60% positive surprise history (having topped the whisper in 39 of the 65 earnings reports for which we have data).

Earnings history:

  •  Beat whisper: 39 qtrs
  •  Met whisper: 0 qtrs
  •  Missed whisper: 26 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock's price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

The strongest price movement of +1.2% comes within twenty trading days when the company reports earnings that beat the whisper number, and -1.2% within thirty trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is 'as expected' (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

The company has reported earnings ahead of the whisper number in three of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings four cents ahead of the whisper number. Following that report the stock realized a 1.1% loss in one trading day. Last quarter the company reported earnings four cents short of the whisper number. Following that report the stock realized a 10.1% loss in thirty trading days. Overall historical data indicates the company to be (on average within thirty trading days) an 'as expected' price reactor when the company reports earnings.

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