Johnson & Johnson Posts Upbeat Q1 Earnings, But Lowers FY15 Forecast

Johnson & Johnson

reported better-than-expected earnings for its first quarter. However, the company lowered its earnings outlook for the year. The New Brunswick, New Jersey-based company posted quarterly net income of $4.32 billion, or $1.53 per share, compared to $4.73 billion, or $1.64 per share, in the year-ago quarter. Excluding special items, the company's adjusted earnings came declined 4.3 percent to $1.56 per share. Its sales slipped 4.1 percent to $17.37 billion. However, analysts were expecting a profit of $1.54 per share on revenue of $17.31 billion. Domestic sales rose 5.9 percent, while international sales slipped 12.4 percent. Worldwide consumer sales slipped 4.7 percent to $3.4 billion for the first quarter, while worldwide pharmaceutical sales gained 3 percent to $7.7 billion. Worldwide medical devices sales dropped 11.4 percent to $6.3 billion for the first quarter. The average estimate among 55 Estimize users was for earnings of $1.53 per share and revenue of $17.42 billion. "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. For the full year, the company now projects earnings of $6.04 to $6.19 per share, reflecting further negative currency movements, versus earlier outlook of $6.12 to $6.27 per share. Analysts had expected earnings of $6.16 per share. Johnson & Johnson shares rose 0.20 percent to $100.75 in pre-market trading.