Johnson & Johnson Revenue Rises But Forecast Disappoints
January 24 2017 - 7:44AM
Dow Jones News
By Austen Hufford
Johnson & Johnson posted revenue and profit increases, but
the health-care giant released an underwhelming forecast for the
year.
Shares fell 2.5% in premarket trading as the company's annual
guidance was below Wall Street expectations.
The New Brunswick, N.J., company said it expects earnings for
the year of $6.93 to $7.08 a share and revenue of $74.1 billion to
$74.8 billion. Analysts polled by Thomson Reuters said expected
earnings per share of $7.11 on revenue of $75.1 billion.
Chief Executive Alex Gorsky said revenue and profit gains were
driven by its pharmaceutical and medical device businesses and that
its consumer unit had increased profitability.
The company also said it was evaluating potential strategic
options, including a potential sale, for its diabetes care
companies, including LifeScan Inc., Animas Corp. and Calibra
Medical Inc. In total, its diabetes care unit had $462 million in
sales in the quarter, a 3.8% decline.
Still, J&J faces the threat of lower-priced competition
emerging for some top-selling prescription drugs. And with nearly
half of its sales overseas, J&J's results have been pressured
by a strengthening U.S. dollar and weakness in some emerging
markets. Currency fluctuations shaved 0.6% off the company's top
line.
Sales at J&J's pharmaceutical business, the company's
largest, rose 2.6% to $8.23 billion, driven by drugs including
blood-cancer drug Imbruvica, arthritis treatment Simponi, blood
thinner Xarelto and multiple myeloma drug Darzalex.
J&J's medical devices business posted sales growth of 0.2%
to $6.44 billion. In its consumer products division, sales grew
3.4% to $3.43 billion.
In all for the December quarter, J&J posted a profit of
$3.81 billion, or $1.38 a share, up from $3.22 billion, or $1.15 a
share, in the same period a year before.
Revenue rose 1.7% to $18.12 billion.
Excluding certain items, adjusted earnings were $1.58 a share.
Analysts had expected $1.56 in adjusted profit per share and
revenue of $18.28 billion.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 24, 2017 07:29 ET (12:29 GMT)
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