Johnson & Johnson Results Driven by Pharmaceutical Sales Growth
January 23 2018 - 8:27AM
Dow Jones News
By Allison Prang
Johnson & Johnson reported an increase in sales for its
fourth quarter, largely spurred by its pharmaceutical business, but
reported a loss because of effects from the new tax law.
The company swung to a loss of $10.71 billion, or $3.99 a share,
compared with a profit of $3.81 billion, or $1.38 a share, in the
year-ago period. The drop was largely because of a tax provision
charge of $13.27 billion.
Excluding special items such as the tax provision, J&J's
profit rose 9.5% to $4.78 billion, or $1.74 a share. Analysts
polled by Thomson Reuters were expecting adjusted earnings of
$1.72.
J&J, one of the largest U.S. health-products companies by
revenue, said sales rose 12% to $20.2 billion. That growth was once
again spurred by the company's pharmaceuticals business, where
sales grew 18%.
The company's international pharmaceutical business grew by 21%,
but sales in the U.S. were overall higher.
Analysts were expecting revenue of $20.07 billion.
J&J said it expects sales between $80.6 billion and $81.4
billion for 2018 and adjusted earnings per share between $8 and
$8.20. Analysts had expected full-year adjusted earnings of $7.87
on revenue of $80.7 billion.
Shares rose 0.9% in premarket trading Tuesday.
In prepared remarks, Chief Executive Alex Gorsky commended the
new tax law, saying it "enables Johnson & Johnson to invest in
innovation at higher levels to help address the most challenging
unmet medical needs" in the business.
The recent short-term government funding bill Congress passed on
Monday included language suspending the 2.3% medical-device excise
tax this year and in 2019. The tax, which an industry trade group
J&J belongs to had lobbied against, applies to devices like
artificial knees.
J&J, along with competitor Teva Pharmaceuticals, is also
talking with Ohio's attorney general after the state sued the
companies, alleging illegal marketing of opioid drugs. J&J has
called the state's claims "baseless and unsubstantiated."
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
January 23, 2018 08:12 ET (13:12 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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