Johnson & Johnson Lifts FY15 Outlook As Q3 Adj. Profit Beats View

(RTTNews) - Healthcare and consumer products giant Johnson & Johnson (JNJ) on Tuesday reported a 29 percent decline in profit for the third quarter from last year, reflecting one-time charges and sales that were hurt by a strong dollar.

However, adjusted earnings per share beat analysts' expectations, while revenues missed their estimates. The company also raised the lower end of its earnings outlook range for fiscal 2015 and announced a $10 billion share repurchase program.

The New Brunswick, New Jersey-based company's third-quarter net earnings declined to $3.36 billion or $1.20 per share from $4.75 billion or $1.66 per share in the same quarter last year.

The latest quarter's results included after-tax intangible amortization expense of about $0.4 billion and a charge for after-tax special items of about $0.4 billion.

Excluding items, adjusted net earnings for the quarter were $1.49 per share, compared to $1.61 per share in the prior-year quarter. On average, eighteen analysts polled by Thomson Reuters expected earnings of $1.45 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales declined 7.4 percent to $17.10 billion from $18.47 billion in the year-ago period and also missed analysts' consensus estimate of $17.45 billion.

Operational sales results increased 0.8 percent, while the negative impact of currency was 8.2 percent. International sales decreased 13.7 percent, reflecting a negative currency impact of 15.8 percent.

Excluding the net impact of acquisitions, divestitures and hepatitis C sales, worldwide sales on an operational basis increased 5.6 percent.

The company's pharmaceutical sales were $7.69 billion, down 7.4 percent from the prior year, hurt by a 5.9 percent decline in sales of rheumatoid arthritis drug Remicade to $1.61 billion.

Consumer product sales declined 7.7 percent to $3.31 billion, consisting of an operational increase of 3.1 percent and a negative impact from currency of 10.8 percent. Sales from medical devices declined 7.3 percent from last year to $6.09 billion.

Looking ahead to fiscal 2015, Johnson & Johnson raised its adjusted earnings guidance to a range of $6.15 to $6.20 per share from the prior range of $6.10 to $6.20 per share. The Street expects earnings of $6.16 per share for the year.

Johnson & Johnson intends to finance the $10 billion share repurchase program through issuance of debt. The company had about 2.76 billion shares of common stock outstanding as of September 27, 2015.

JNJ closed Monday's trading at $95.99. In Tuesday's pre-market activity, the stock is up $0.01 or 0.01 percent to $96.00.