Johnson & Johnson (NYSE: JNJ) is set to release its fourth-quarter financial results before the markets open Tuesday. Thomson Reuters has consensus estimates of $1.42 in earnings per share (EPS) on $17.88 billion in revenue. In the same quarter of last year, the health care giant posted EPS of $1.37 and revenue of $18.25 billion.

The company is looking to save some money over the next few years and as a result it is taking action by restructuring its Medical Devices businesses. Ultimately Johnson & Johnson is undertaking actions to strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies and streamline operations while maintaining high-quality standards.

The actions are expected to result in annualized pretax cost savings of $800 million to $1 billion, the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016.

The company expects to record pretax restructuring charges of approximately $2.0 billion to $2.4 billion, which will be treated as special items, of which approximately $600 million will be recorded in the fourth quarter of 2015.

Johnson & Johnson is one the top market cap stocks in the health care sector. With everything from medical devices to over-the-counter (OTC) health items and prescription drugs, the company remains one of the most diversified health care names on Wall Street.

The company also has one of the most exciting pipelines of new drugs in the sector. That, combined with the solid OTC product business, makes the stock an outstanding holding. With branded pharmaceuticals leading the sales growth for the company, investors received mildly bullish reports earlier in 2015.

A few analysts issued calls prior to Johnson & Johnson releasing its report:

• Raymond James reiterated an Outperform rating but lowered its price target to $105 from $108.
• Jefferies has a Hold rating and lowered its price target to $92 from $95.
• Atlantic Securities initiated coverage with a Neutral rating and a $95 price target.

So far in 2016, this company has outperformed the markets, with the stock down only 5.8% year to date, as well as down only 4% over the past 52 weeks.

Shares of Johnson & Johnson trading at $97.40 on Monday, with a consensus analyst price target of $108.00 and a 52-week trading range of $81.79 to $105.49.

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