Johnson & Johnson Q2 Earnings Top Expectations

reported better-than-expected profit for its second quarter and raised its FY15 profit outlook. The New Brunswick, New Jersey-based company posted quarterly net earnings of $4.52 billion, or $1.61 per share, compared to $4.33 billion, or $1.51 per share, in the year-ago quarter. Excluding non-recurring items, the company's adjusted earnings came in at $1.71 per share. Its sales dropped 8.8 percent to $17.8 billion for the second quarter. However, analysts were expecting earnings of $1.67 per share on revenue of $17.75 billion. The average estimate among 49 Estimize users was for earnings of $1.73 per share and revenue of $17.66 billion. Domestic sales slipped 2.4 percent, while international sales shrank 14.3 percent. Worldwide consumer sales declined 7 percent year-over-year to $3.5 billion for the quarter, while worldwide pharmaceutical sales slipped 6.6 percent to $7.9 billion. Worldwide medical devices sales shrank 12.2 percent to $6.4 billion for the second quarter. "Our solid sales and earnings results in the quarter reflect the strong underlying growth we're seeing across the enterprise," said Alex Gorsky, Chairman and Chief Executive Officer. "Our diverse portfolio and scale are enabling this performance, and we've continued to invest in building a robust enterprise pipeline that will drive our growth over the long term. Our passion to deliver transformational new medicines and products reflects the ongoing commitment of our dedicated employees to improve health and well-being." Johnson & Johnson now expects GY15 adjusted earnings of $6.10 to $6.20 per share, versus its prior forecast of $6.04 to $6.19 per share. Johnson & Johnson shares rose 0.08 percent to $100.35 in pre-market trading.