J&J Lifts Full-year Outlook As Q2 Results Beat View

(RTTNews) - Healthcare giant Johnson & Johnson (JNJ) on Tuesday reported a profit for the second quarter that more than doubled from last year, reflecting higher revenues and lower charges. Both adjusted earnings per share and revenue for the quarter topped analysts' expectations. Buoyed by the results, the company raised its earnings outlook for fiscal 2013.

The New Brunswick, New Jersey-based maker of Listerine antiseptic mouth-rinse, Acuvue contact lenses and Band-Aid reported net earnings for the second quarter of $3.83 billion or $1.33 per share, up from $1.41 billion or $0.50 per share in the prior-year quarter.

The latest quarter's results include a gain on the sale of equity interest owned in Elan Corp plc and after-tax special items of about $0.5 billion, mainly related to litigation expenses, integration and transaction costs associated with the acquisition of Synthes Inc., and program costs associated with the DePuy ASR Hip. Meanwhile, the year-ago quarter included after-tax charges of about $2.2 billion.

Excluding items, adjusted earnings for the latest quarter was $4.29 billion or $1.48 per share, compared to $3.64 billion or $1.30 per share in the same period last year.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.39 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter increased 9 percent to $17.88 billion from $16.48 billion in the year-ago quarter and beat analysts' consensus estimate of $17.71 billion. Operational sales grew 10 percent, while the negative impact of currency was 2 percent.

Sales include the impact of the acquisition of Synthes, net of the divestiture of the DePuy trauma business. Excluding this impact, worldwide operational sales growth was 6 percent.

Domestic sales for the quarter increased 8 percent year-over-year to $7.95 billion and international sales grew 9 percent to $9.93 billion, reflecting operational growth of 12 percent and a negative currency impact of 3 percent.

The company's European sales grew 12 percent from the year-ago quarter, while Asia-Pacific and Africa sales increased 4 percent. Sales for Western Hemisphere, excluding the U.S., rose 14 percent from last year.

Johnson & Johnson's consumer product sales edged up 1.1 percent to $3.66 billion, with domestic sales rising 1.0 percent and international sales increasing 1.1 percent.

Pharmaceutical sales grew 12 percent to $7.03 billion, boosted by 10 percent increase in sales of rheumatoid arthritis drug Remicade to $1.67 billion. Total domestic sales increased 9 percent and international sales grew 14 percent.

The company's worldwide sales from medical devices and diagnostics rose 10 percent from last year to $7.19 billion, with 10 percent growth in domestic sales and 9 percent increase in international sales.

Looking ahead to fiscal 2013, Johnson & Johnson raised its adjusted earnings outlook to a range of $5.40 to $5.47 per share from the prior range of $5.35 to $5.45 per share. Analysts expect the company to report earnings of $5.41 per share for the year.

JNJ closed Monday's trading at $90.40. In Tuesday's pre-market, the stock is adding $0.85 or 0.94 percent to $91.25.