Jefferies Comments On Johnson & Johnson's Q1:11 Results

According to Jefferies, Johnson & Johnson's (NYSE: JNJ) Q1:11 results and comments point toward improving pricing, volume, and utilization trends in select divisions.Jefferies reported that read-through is neutral-to-positive for competing companies in our universe including COV, BCR on the surgical end, and COO on the vision end. "Johnson & Johnson (JNJ, $60.46,NC) reported Q1:11 revenue of $16.2B (+1.8% y/y operational) and EPS of $1.25 (-3.1% y/y adjusted) versus Street expectations of $15.9B and $1.26. The company raised its EPS guidance to $4.90-$5.00, up from $4.80-$4.90 to reflect F/X impacts, strong pharma performance supported by recent launches, and other operational and capital restructuring benefits. Revised guidance does not include the after-tax gain of $910M realized in the quarter as a result of litigation settlements, nor does it reflect the pending $500M payment from Merck (MRK GR, €67.56, Hold - Holford) as a result of the recent REMICADE settlement.