J&J Q1 Profit Rises, Results Top Estimates; Lifts 2014 Adj. EPS View

(RTTNews) - Healthcare giant Johnson & Johnson Co. (JNJ) said that its net earnings for the first quarter of 2014 increased to $4.73 billion or $1.64 per share from $3.50 billion or $1.22 per share in the same quarter last year.

The latest-quarter result included a net gain of after-tax special items of approximately $0.3 billion, related to a tax benefit associated with Conor Medsystems partially offset by integration and transaction costs related to the acquisition of Synthes, Inc. and an in-process research and development charge.

First quarter 2013 net earnings included a net charge of after-tax special items of approximately $0.6 billion.

Excluding these special items, net earnings for the quarter were $4.43 billion or $1.54 per share, up from $4.11 billion or $1.44 per share in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.48 per share for the quarter. Analysts' estimates typically exclude special items.

"Johnson & Johnson delivered strong first-quarter results driven by successful new product launches and the continued growth of key products. Our talented colleagues around the world continue to bring meaningful innovations to patients and customers, addressing significant unmet needs. We also advanced our near-term priorities and long-term growth drivers, positioning us well to deliver sustainable results," said Alex Gorsky, Chairman and Chief Executive Officer.

Quarterly sales were $18.12 billion, an increase of 3.5% from $17.51 billion last year. Thirteen analysts estimated revenues of $18.00 billion for the quarter. Operational results increased 5.3% and the negative impact of currency was 1.8%. Domestic sales increased 2.2%. International sales increased 4.5%, reflecting operational growth of 7.9% and a negative currency impact of 3.4%.

The company increased its earnings guidance for full-year 2014 to a range of $5.80 - $5.90 per share. The Company's guidance excludes the impact of special items. Analysts project annual earnings per share of $5.83. The company said in January that it expected adjusted earnings to be in a range of $5.75 to $5.85 per share for full-year 2014.