Johnson & Johnson Q1 Results Hurt By Currency, Yet Revenue Tops View

(RTTNews) - Healthcare company Johnson & Johnson (JNJ) Tuesday said its first-quarter profit and revenue declined from the previous year, hurt by currency. Yet, revenues topped estimates. Further, the company updated its earnings forecast for the year.

"The company delivered strong underlying growth in the first quarter driven by new products and the strength of the core business. Of note is the continued robust growth of the Pharmaceutical business and the solid performance of our Consumer brands," said Alex Gorsky, chairman and chief executive officer.

Net earnings decreased to $4.32 billion or $1.53 per share from the previous year's $4.73 billion or $1.64 per share. The latest results included after-tax intangible amortization expense of $0.2 billion and a net gain of about $0.1 billion, partially offset by costs related to the DePuy ASR Hip program.

Excluding items, net earnings were $1.56 per share, while it totaled $1.63 per share last year. On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.54 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales dropped 4.1 percent to $17.37 billion from $18.12 billion in the prior-year quarter. Wall Street expected revenues of $17.31 billion.

The company noted that operational results increased 3.1 percent and the negative impact of currency was 7.2 percent.

Domestic sales increased 5.9 percent, while International sales decreased 12.4 percent. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 5.7 percent, domestic sales increased 9.1 percent and international sales increased 3 percent.

Worldwide Consumer sales fell 4.7 percent to $3.4 billion but operational increase was 3.4 percent. Positive contribution to operational results came from Tylenol and Motrin analgesics, digestive health and international upper-respiratory over-the-counter products; Neutrogena and Aveeno skin care products; Listerine oral care products; international sales of feminine protection products; and domestic sales of baby care products.

Worldwide Pharmaceutical sales grew 3 percent to $7.7 billion with operational growth of 10.2 percent, driven by new products and the strength of core products. These include Invokana/Invokamet for the treatment of adults with type 2 diabetes, Xarelto, an oral anticoagulant, Imbruvica, an oral, once-daily therapy approved for use in treating certain B-cell malignancies or blood cancers.

Further, the company updated its adjusted earnings guidance for full-year 2015 to $6.04 to $6.19 per share. The projection issued earlier this year was for earnings in the range of $6.12 to $6.27 per share. Analysts expect annual earnings of $6.16 per share.

The stock, which closed down 1.5 percent at $100.55 on Monday, rose moderately in pre-market activity.