Johnson & Johnson beats Q1 analyst estimates
Johnson & Johnson (NYSE:JNJ) topped analyst expectations on Tuesday with its first quarter results, helped by strong pharmaceutical sales and a weaker dollar.
Despite a number of consumer product recalls due to a suspension of manufacturing at its Pennsylvania facility, the company managed to post an increase in sales over the prior year period.
Revenue rose 3.5% to $16.2 billion in the first quarter, well above analyst estimates of $15.83 billion.
Net earnings in the first quarter were $3.47 billion, or $1.25 per share, down from $4.53 billion, or $1.62 per share, in the year-ago quarter when J&J benefited from substantial tax gains.
However, excluding legal charges, recall costs of hip replacement products and gains from a year earlier, the company made adjusted earnings of $1.35 per share, versus $1.29 per share in the first quarter of 2010. Analysts had anticipated earnings of $1.26 per share.
Pharmaceutical sales hit $6.1 billion in the first quarter, representing a 7.5% increase from the prior year period. This was helped by a 10% rise in international sales, and recently launched products.
Consumer sales sunk just over 2% to $3.7 billion, as domestic sales plunged nearly 14%. The company said sales in U.S. over-the-counter medicines were significantly impacted by the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, Pennsylvania.
Over the past year and half, the company has recalled more than 300 million packages of Tylenol and other consumer drugs after the FDA said there were quality-control problems at the Pennsylvania facility. It has since signed a decree with the FDA to fix the manufacturing problems under the agency's supervision.
Medical device and diagnostics sales rose 3% to $6.4 billion, due to a number of products, including Lifescan blood monitoring devices for diabetics.
Overall, domestic sales declined 0.6% in the first quarter, while international revenue climbed 7.3% on strength in the Asia Pacific and Africa.
The diversified healthcare company said it now expects earnings in the range of $4.90 to $5.00 per share for 2011, excluding the impact of special items, up from its previous guidance of between $4.80 to $4.90 per share.
Shares of Johnson & Johnson rose more than 3% on Tuesday to trade at $62.37 as of 3:11pm EST.
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