Johnson & Johnson Q4 Profit Down; Sees 2015 Adj. EPS In Line - Quick Facts

(RTTNews) - Johnson & Johnson (JNJ) reported that its net earnings for the fourth-quarter decreased to $2.52 billion from the prior year's $3.52 billion, with earnings per share declining to $0.89 from $1.23 in the previous year.

Fourth-quarter 2014 net earnings included a charge for after-tax special items of approximately $1.1 billion, primarily related to an increase in the litigation accrual, integration costs related to the acquisition of Synthes, Inc., and an in-process research and development charge. Fourth-quarter 2013 net earnings included a net charge for after-tax special items of $42 million.

Excluding these special items, net earnings for the latest-quarter were $3.6 billion and earnings per share were $1.27, representing increases of 1.4% and 2.4%, respectively, as compared to the same period in 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $1.26 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales dropped to $18.25 billion from $18.36 billion in the prior year quarter. Wall Street expected revenues of $18.55 billion.

The Company announced adjusted earnings guidance for full-year 2015 of $6.12 to $6.27 per share. Analysts expect annual earnings of $6.13 per share. Beginning in 2015, adjusted earnings excludes after-tax intangible amortization expense in addition to special items. After-tax intangible amortization expense for 2014 was approximately $0.42 per share and for 2015 is anticipated to be approximately $0.32 per share.