Johnson & Johnson Posts Upbeat Q3 Earnings, But Sales Drop

reported better-than-expected earnings for the third quarter and lifted its earnings forecast for the full year. However, the company reported a decline in its quarterly sales. The New Brunswick, New Jersey-based company reported quarterly net earnings of $3.36 billion, or $1.20 per share, compared to $4.75 billion, or $1.66 per share, in the year-earlier quarter. Excluding items, the company's adjusted earnings came in at $1.49 per share. Its sales dropped 7.4 percent year-over-year to $17.1 billion for the third quarter. However, analysts were expecting earnings of $1.45 per share on revenue of $17.5 billion. The average estimate among 111 Estimize users was for earnings of $1.46 per share and revenue of $17.46 billion. Domestic sales slipped 0.6 percent, while international sales dipped 13.7 percent. Worldwide consumer sales dropped 7.7 percent to $3.3 billion for the third quarter, while worldwide pharmaceutical sales slipped 7.4 percent to $7.7 billion for the quarter. Worldwide medical devices sales declined 7.3 percent to $6.1 billion. The company's board also announced a $10 billion share buyback program. "New and core products drove solid underlying growth for Johnson & Johnson in the quarter," said Alex Gorsky, Chairman and Chief Executive Officer. "Consistent with the plans we've laid out for the year, we're focusing our portfolio and are advancing our innovation agenda to expand our leadership position in key categories while seeking new opportunities for growth. Our dedicated employees are committed to improving healthcare and making a difference in the lives of patients and consumers worldwide." J&J lifted its adjusted earnings forecast for the full year to $6.15 to $6.20 per share. J&J shares rose 0.95 percent to $96.90 in pre-market trading.