Johnson & Johnson Q3 Profit Up; Lifts 2014 Adj. EPS View - Quick Facts

(RTTNews) - Healthcare giant Johnson & Johnson Co. (JNJ) reported that its third-quarter net earnings increased to $4.749 billion from last year's $2.982 billion with earnings per share improving to $1.66 from $1.04 last year.

The latest-quarter results included a net gain for after-tax special items of approximately $0.5 billion, driven by an after-tax net gain of approximately $1.1 billion from the divestiture of Ortho-Clinical Diagnostics. This gain was partially offset by other special items primarily related to an increase in the litigation accrual, a charge to account for an additional year of the non-tax deductible Branded Prescription Drug Fee in accordance with final regulations issued in the third quarter by the Internal Revenue Service, integration costs related to the acquisition of Synthes, Inc. and program costs associated with the DePuy ASRTM Hip.

Third quarter 2013 net earnings included a charge for after-tax special items of approximately $0.9 billion.

Adjusted earnings per share were $1.50 up from $1.36 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales grew to $18.467 billion from $17.575 billion in the prior year. Wall Street expected revenues of $18.38 billion.

The company increased its earnings guidance for full-year 2014 to $5.92 - $5.97 per share, excluding the impact of special items. Analysts project annual earnings per share of $5.93. The company said in July that it expected earnings for full-year 2014 to be $5.85 - $5.92 per share, excluding the impact of special items.